Life Cover
This type cover is to protect against the loss of a loved one and ensure those debts are cleared if the worst ever happens. The term (period of cover) can be chosen to cover the length of your mortgage, or the time when children are growing up and expenses are high. Below is the two main types of cover that are available.
Level Term Assurance, the sum insured that has been agreed will remain the same throughout the term of the policy. So in the event of any claim the cover will remain the same.
Decreasing Term Assurance (Mortgage Protection) basically the sum insured reduces by a fixed amount each year, decreasing to nil at the end of the term. These policies are usually used to cover a mortgage or other loan as they pay any outstanding balance of the debt if you die early.
With regards to the covers listed above you can often add on additional benefits, such as Critical Illness Cover, Waiver Of Premium, Total & Permanent Disability, however with all the these there are various options available. Some providers offer a menu plan option, with this you are able to add a number of benefits onto one plan in single and joint names.
The type of premium normally preferred is guaranteed, i.e does not vary through the term but in some instances this may not be available or suitable.