A life assurance policy pays out a sum of money when the person who is covered by the plan dies.
The money is intended to pay off any outstanding debts and support the dependants financially.

The type of life assurance and the amount of cover you may require will depend on your particular circumstances and will consider factors such as age, dependants, level of income and financial liabilities.

There are a variety of life assurance plans providing a range of cover options, they can be level, increasing, decreasing, can run to a specific term or for the whole of your life. At a greater premium you can also add the benefit of critical illness cover which will provide the lump sum benefit on the diagnosis of a critical illness.

With each type of product there are various additional benefits that can be added, such as accidental death, children’s critical illness and total permanent disability cover to name but a few.

Level Term Assurance
A level term assurance plan is the most basic form of life insurance and is usually the cheapest way to insure your life. It covers you for a fixed period and pays out a one off lump sum if you die during the policy term. At the end of the term the plan will cease.

This type of plan is designed for those who want to leave a lump sum in the event of their death within a specified time period whilst keeping cost to a minimum.

If the person survives to the end of the term, the policy will end and have no value. 

Decreasing Term Assurance
Decreasing term assurance works similarly to level term assurance but the benefit is set on outset to gradually decrease over the term of the policy. These types of plans are usually set to coincide with a reducing debt on a mortgage, or other loans where the amount of capital outstanding decreases over time.

Although the sum assured reduces gradually the contribution remains the same throughout the term of the plan.

As with level term assurance, if the person survives to the end of the term, the policy will end and have no value.

Increasing Term Assurance
This is a form of term assurance whereby the sum assured can increase during the term of the policy usually to factor in the rising costs of living. As the sum assured rises over time the premiums will also increase. 

Whole of Life
This type of policy covers you for the whole of your life and guarantees to pay out in the event of death, whenever it occurs.   

It is often used to cover potential inheritance tax liabilities by placing it in trust. In the event of death the benefits will be paid out to the beneficiaries under the trust, and they can use the money to pay the tax bill.

This type of policy is typically more expensive than those that provide cover over a set period of time.

Critical Illness Cover
Critical illness cover can be set up as a stand alone plan but is usually available as an addition to term assurance and whole of life plans.

Critical illness cover generally allows for the lump sum benefit to be paid in the event of diagnosis of certain critical illnesses, such as heart attack, cancer or stroke.

The illnesses covered can vary significantly between providers so it’s important you choose one that offers you the level of protection you require.

Your ability to earn an income is one of your most important financial assets if not the most important. If you are dependent on your income to pay your bills and maintain your desired lifestyle, then protecting that income stream should be a priority.

Income Protection
Income protection cover is designed to provide you with a replacement income if you are unable to work due to illness or accident. Most employers provide sick pay for a limited time only, very few indefinitely.

These polices generally start paying after a specified deferred period and will continue until you retire or recover and are able to return to work.

The level of premium will depend upon the level of benefit required and the term selected.

Family Income Benefit
Family income benefit is designed to replace lost income in the event of death so that your family is protected against the loss of your income.

In the event of your death the policy pays out a set amount of income for the remaining term of the life insurance policy enabling your family to maintain their standard of living.

The income is free of tax because it is regarded as instalments of a sum assured.

Private medical insurance, also known as health insurance, pays for private medical treatment, either by meeting the costs of private medical care or as a lump sum payment.

An individual can provide plans for themselves, on a single or joint life basis, and also include family members.  There are different levels of cover and the treatments available will vary depending on the insurance policy.

Long term care insurance provides the financial support needed to pay for care assistance for yourself or a loved one should they become unable to carry out a number of activities required for daily living.

The benefits of the plan are designed to meet the cost of nursing home fees and in some cases providing nursing care in the home.

While the state can assist with some cases, eligibility and help is limited. You may need to pay for long term care if you do not qualify for local authority funding, want to enhance your care facility or need to make up any care fees shortfall.

Providing long term care can be a serious financial burden. If you are concerned about the cost of long-term care fees please contact one of our specialised accredited advisers.