Life Insurance Glossary
Renewable Term
This is a variant of the level term life insurance. It allows the policyholder to extend the cover for a period of time at the original ending date of the policy.
Increasing Benefit
Increasing benefit is a form of protection against inflation. If you include increasing benefit option on your policy, the benefits on the plan would increase each year in line with inflation or an agreed factor to give you this protection. It also provides more flexibility to factor in additional insurance in line with the increase in income or change in financial personal circumstances.
Family Income Benefit
Family Income Benefit pays out a regular annual income (actual payments can be half yearly, quarterly or monthly) in the event of death or diagnosis of a specified critical illness, during a specified period for your dependants.
Mortgage Protection
A lump sum policy to repay a repayment mortgage (also known as decreasing term assurance). Pays out a reducing sum insured over a specified period in order to repay a capital & interest repayment mortgage in the event of death or critical illness. Due to the reducing sum insured the cost of this policy is lower than the level term assurance.
Critical Illness
This kind of life insurance pays out the sum insured only on diagnosis of the insured person having contracted one of a range of specified critical illnesses. These illnesses usually include heart disease, stroke, and cancer. This is not offered as a standard part of a life insurance policy. Our broker partners can provide can provide critical illness cover in addition to a standard life insurance policy.
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