Life Insurance

Protecting Your Family Using a Level Term Assurance policy

Level Term Assurance can be used to protect yourself, your family, your mortgage or a business, for a fixed monthly premium throughout a term you have chosen. The amount of life cover you have chosen will be paid out as a lump sum if you die, or are diagnosed with a terminal illness.

The advantages of using this policy to protect your family are that it is a fairly cheap way of guaranteeing a lump sum payout for your loved ones upon your death. The aim of this policy is to provide you with peace of mind knowing you will not leave a burdening debt if the worst were too happen. The premiums paid per month can also be guaranteed which means that they will not increase for the entire term. With premiums starting from £5 per month it is a very affordable way to protect your interests. Critical illness cover can also be added to the policy meaning that if you are diagnosed with a critical illness such as cancer or heart attack, the policy will also pay out. This means you do not necessarily have to die to receive a payout and could use the money in the event of not being able to work. In the same way that critical illness cover can be added to the policy so can Waiver of Premium. This means that if the assured is unable to work for a period of six months or longer due to illness or injury the monthly premium they pay will be paid by the insurer.

The limitations of this policy are that taken out, the term cannot be extended, which means that if at the end of the policy you have become ill you may not be able to take out any further cover. The other draw back to this policy is that the sum assured does not increase with inflation and if this has not been taken into consideration when the policy was taken out, the policy payout may not be enough to meet the needs of your family in the future. There are some schemes that offer policies that are linked to inflation but this would also mean that the premium behaves the same way.

The level term assurance is an ideal low cost way to protect yourself for a set amount of time. Good examples of how people use this policy include protecting your children until they are of an age when they will be financially independent or covering your income that will be lost to a partner if you were to pass away.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.