Here we explain the different forms of covers that we provide via our online low cost life insurance service.
This type of policy provides death benefit only, The amount of cover chosen at outset remains the same throughout the policy's term. It will pay out the insured sum in the event of death occurring during the selected term, irrespective of the cause of death. LTA policies do not acquire a surrender value or provide cash at the end of the policy term. Many LTA policies will also pay out the insured sum if a terminal illness is diagnosed during the policy term. LTA is generally regarded as the most cost-effective way of providing life assurance cover.
This is a form of term assurance which, like LTA, provides death benefit only. The amount of cover chosen at outset decreases gradually over the selected term, to mirror the reducing amount owed under a repayment (or capital & interest) mortgage. It will pay out on the event of death occurring during the selected term, irrespective of the cause of death. MPA policies do not acquire a surrender value or provide cash at the end of the policy term. Many MPA policies will also pay out the insured sum if a terminal illness is diagnosed during the policy term. MPA is generally regarded as the most cost-effective way of providing life cover to pay off a repayment mortgage in the event of death.
Critical illness cover is available as an optional extra to either Level Term Assurance or Mortgage Protection Assurance policies. This cover significantly increases the premium payable, however it provides valuable extra financial protection. If CIC is included as an addition to a policy, the sum insured will be paid out on the diagnosis of certain illnesses or medical conditions, or on death, whichever occurs first during the policy term. The following list gives examples of some* of the illnesses and medical conditions generally covered by CIC: