Life Cover (also called Life Assurance)
Life cover is simply insurance that you take out for a set number of years. If you die within the period the policy will pay out the amount you are insured for to the executors of your will.
There are several different versions of life cover, with the main differences being how much they would pay out if you died.
Level Term Assurance is where the amount of life cover remains the same over the period or term of the policy. So if you took out £100,000 of level term assurance for 20 years, the amount of money paid out if you died would be the same if you died after 1 year or 20 years, i.e. £100,000.
Decreasing Term Assurance is where the amount of life cover reduces over the period or term of the policy, very much in the same way that the amount you owe on a repayment mortgage reduces over time. Decreasing Term Assurance is also called Mortgage Protection as people often take this policy out to pay off the remaining balance of their mortgage if they or their partner/spouse dies before the mortgage is repaid. This policy is often cheaper than Level Term Assurance as the amount of life cover reduces over time, rather than stays the same.
See how much you may be able to save!
Making savings on your level term assurance may not seem that much per month, but when you look at it on an annual basis or even over the term of the policy, then a phone call to us may start to be worthwhile!
To have a more detailed and personalised illustration please contact us or click here to get an instant quote
|
Age |
|
30 |
35 |
40 |
45 |
Compass |
6.65 |
8.55 |
11.85 |
18.05 |
Nationwide |
7.40 |
8.90 |
12.40 |
19.30 |
Halifax Life |
8.99 |
11.50 |
16.30 |
23.13 |
HSBC Life |
9.42 |
11.90 |
16.85 |
25.15 |
Abbey |
10.59 |
12.70 |
16.84 |
25.59 |
CIS |
10.90 |
14.20 |
21.00 |
34.00 |
|
|
|
|
|
Annual saving* |
51.00 |
67.80 |
109.80 |
191.40 |
Table above shows example monthly premiums for £100,000 of life cover over a 20-year period for a male non-smoker.
* The annual saving is the difference between the highest and lowest illustrations as shown above. Over a 20 year period of cover, you could save over £3,828 !!
Source: Moneyfacts Investment Life & Pensions - April 2006
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