What is it?

It’s a term insurance policy which will only pay out on the death of the live(s) assured within the term the policy is taken out for. The pay out will be to the beneficiary named in the policy document.

The life assured can be either one person or it can be jointly in the name of a couple, when the pay-out would be on the first death only.

This plan is suitable for someone looking for family protection, protecting the mortgage, or protecting other types of outstanding debt should the life assured die.

The amount of cover (Sum Assured) will depend on the premium paid, the term and the age of the applicant or applicants. LICI UK may charge a higher premium, and may even decline a proposal, if the health conditions of the live(s) assured warrants it.

It should be noted that under this policy, benefit is payable only in case of death during the selected term and nothing is payable when the term is completed.

Eligibility

You must be between 18 to 69 years old when you apply and a resident in the UK to be eligible to take the plan. The minimum term for the plan is 5 years and the maximum term allowed will be 40 years subject to the age at maturity not exceeding 74.

How much cover can you take?

You can start the plan with as low as £5 a month or £60 a year by Direct Debit.

The maximum cover allowed will depend on your personal circumstances.

What are the main features

  • This is a term insurance plan, in which benefit is payable only in case of death of the life assured(s) during the term of the policy. The policy acquires no cash value other than the pay out on death of the assured.
  • The plan can be taken for family protection, mortgage protection, or other debt protection . The Sum Assured will remain the same during the whole term of the policy unless it is taken for the purpose of mortgage protection, in which case it will keep reducing in line with the mortgage debt decreasing.
  • Please note that you have to keep paying the premium regularly to be eligible to get the benefit.
  • If you stop paying premium anytime during the term of the policy the benefit will cease and nothing will be payable to you.
  • In case of a joint life policy, when either of the policyholders dies the policy will end.

Risks you should consider

  • The policy does not have any maturity value as it is purely for protection and the only pay-out is upon death of an assured person.
  • In the event of the first death of joint assureds, the other surviving party will be left with no continuing life insurance. You should consider if two separate policies are better for you than one joint policy.
  • No benefit is payable under the plan if premium is not paid regularly.
  • Inflation may affect the purchasing value of the Sum Assured in future. You may need to review it from time to time to ensure that your needs are met by the level of cover.

 

If you want to buy a new policy or want to discuss further, please call us free on 08000 685712 or email to enquiry@liciuk.com