Life Cover

There are 3 main types of Life Cover available:

1) Term Assurance

Term Assurance is a life cover policy that provides cover for a specific length of time.

For example, Louise and Patrick, a couple both currently aged 35, might decide to take out a Term Assurance policy which will run until they reach age 65, i.e. a 30 year term. 

Term Assurance policies often come with extra options available, such as guaranteed premiums and inflation protection. Reviewing these options with your Advisor before making any decisions will help ensure you have the right cover for your own circumstances.

2) Mortgage Protection

Mortgage Protection is a life cover policy that is directly linked to your pension.

If you were to pass away during the term of your mortgage, your mortgage protection will pay off the remaining balance of the mortgage. This means that your surviving spouse or family members will not be left liable for any remaining debt associated with the loan.

When you apply for your mortgage, your lender will require you to take out a Mortgage Protection policy and provide proof of same.

3) Whole of Life Cover

Whole of life insurance cover does not have a fixed end date and so covers you for life. Upon your death, a payment will be made to your next of kin.

As this type of life cover is guaranteed to pay out, it is often used for estate planning, or to cover funeral expenses. The downside of this type of cover however is that it can be significantly more expensive than Term Assurance.