Life cover pays out a predetermined lump sum of money if you die within a certain time period. The term usually applies to between five and forty years.
This payment can be used to:
- Protect your loved ones financially if you die.
- Ensure the financial survival of your business, in the event of the death of a key employee or director.
Single, Dual and Joint Life Cover
Most policies are available on a dual or joint life basis in addition to a standard single life policy.
Single Life Cover
- Taken out by one person.
- Is payable on their death during the term of the policy.
Dual Life Cover
- Taken out on behalf of two people.
- Is payable on each death during the term of the policy.
Joint Life Cover
Joint life cover is also taken out on behalf of two people. It can be taken out on a first-death or second-death basis:
POLICY – WHEN WILL POLICY PAY OUT?
Joint Life First Death
- After the death of the first person named on the policy.
Joint Life Second Death
- After the death of the second person named on the policy.
Extra Benefits that may be included:
Terminal Illness Benefit
• Pays a percentage of your death benefit in advance if you are diagnosed with a terminal illness.
• Is paid on the condition that you have a life expectancy of twelve months or less.
Accidental Death Benefit
• Available on certain policies.
• Provides accidental death cover while your policy application is being processed for a certain amount.
Hospital Cash Cover
Will pay a specified income – usually after three days in hospital – subject to a maximum payment for 365 days.
Personal Accident Benefit
A specified income amount payable after fourteen days whereby the life assured has become temporarily disabled as a result of an accident and unable to continue in their occupation.
Convertible Term Cover
This allows you to convert your level term cover to an alternative life assurance plan without providing additional medical evidence, at any time during your policy term – usually applies up to the age of 65.
The alternative plan you may convert to is:
• Level term life cover expiring before the age of 80.