Which Type Of Policy Do You Need?

Life Insurance and Critical Illness Cover are available as separate policies or as a combined policy.

Life Insurance - Pays out a tax free lump sum, or monthly benefit, in the event of death during the term of the policy. If the policy reaches the end of its term, there is no cash return.

Terminal Illness Cover - Pays out a tax free lump sum, or monthly benefit, in the event of being diagnosed as having less than 12 months to live. Terminal Illness Cover is included free of charge within Life Insurance policies, and is not the same as Critical Illness Cover.

Critical Illness Cover - Pays out a tax free lump sum, or monthly benefit, in the event of diagnosis of a critical illness, these include such things as: Heart Attack, Cancer, Stroke, Alzheimer’s Disease and Total and Permanent Disability.

The following options are available:

For Mortgages

	Decreasing Cover - If you require cover for a Repayment Mortgage this type of policy may be suitable. The amount of cover decreases along side the balance of your repayment mortgage, over the term of your mortgage. The premiums for this type of policy are generally lower than any of the other types of cover.
	Level Cover - If you require cover for an Interest Only Mortgage this type of policy may be suitable. This type of cover can also be used for repayment mortgages. The amount of cover remains the same throughout the length of the policy.

For General Cover

	Level Cover - As well as being suitable to cover interest only mortgages (see above), this type of policy may also be suitable for general cover. The amount of cover remains the same throughout the length of the policy.
	Increasing Cover - The amount of cover increases each year, generally in line with inflation. The premiums are generally more expensive and also increase each year. This type of policy is designed to keep up with cost of living increases.