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Term Assurance can be used to provide life cover and/or critical illness cover and the lump sum benefit is not subject to income or capital gains tax. The plan remains in force for a specified period of time and expires without value. The premiums and cover can be structured in a number of ways for example level cover with guaranteed premiums. Under this plan the sum assured and premium payable will remain the same for the duration of the contract.
Whole of Life Assurance
Whole of life assurance can be used to provide life cover and/or
critical illness cover.
The premiums and cover can be structured in a number of ways, for example:
Maximum Cover provides the highest initial sum assured.
The sum assured is guaranteed until the first plan review (usually
in ten years). At that point, either the sum assured will reduce
significantly or, if you wish to maintain the same level of cover,
the premium will increase significantly to take into account your
current age. No further medical evidence will be required unless
you increase the cover.
Standard Cover provides a cover from a premium which is
targeted to remain the same throughout life. No further medical
evidence will be required unless you increase the cover.
In both cases a proportion of each contribution you pay, less any
service fee, is invested in a fund, or funds, of your choice. Each
month a deduction is made from the units to pay for life and critical
illness cover. This fund is then used by the insurer to suppress
future increases in premium. The higher the level of cover selected,
the less will be invested in your fund.
Do you have any life cover? If you do is it enough? Please contact
us to arrange a meeting if you wish to discuss your life cover
requirements.
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