Having life insurance in place can be important in helping those left behind deal with potentially difficult situations.

This may include helping them pay off a mortgage, providing them with money in the bank to assist with the new financial circumstances they find themselves in, help pay for school fees or even just being able to pay for your funeral costs.

Most life insurance policies are arranged so that cover is designed to be in place for a specified number of years or to a certain age and are usually referred to as a Term Assurance.

Whole‑of‑life policies however, are appropriate to those circumstances where the need is for a sum of money to be paid on the death of an individual, whenever that death may occur.

Level Term Assurance

• The amount of cover stays the same throughout the term.
• Cover is provided for a specified period of time (‘the term’).
• Benefits are payable on death only during the specified term.
• Policies can be arranged on a single life or a joint‑life first‑death basis

Decreasing Term Assurance

• The amount of cover gradually reduces over the term, eventually to nothing at the end of the term.
• The benefit could be used to repay an outstanding debt such as a repayment (capital and interest) mortgage.
• Cover is provided for a specified period of time (‘the term’).
• Benefits are payable on death only during the specified term.
• Policies can be arranged on a single life or a joint‑life first‑death basis

Family Income Benefit

• Is a form of decreasing term assurance, but which pays the death benefit as regular monthly payments instead of a one-off lump sum.
• Cover is provided over a specified period of time or to a certain age (‘the term’).
• If death occurs during the policy, premiums cease and the insurer can pay a monthly income/benefit to your family or whomever you’ve specified the benefit should go to (if applicable) until the end of the remaining policy term.

Whole of Life

• With a non‑profit whole‑of‑life plan, the sum assured and premium are fixed for the life of the insured. Changes cannot be made to the plan.
• The policy pays out when, not if, the life assured dies.
• Policies can be arranged on a single life or a joint‑life, first or second death basis.

Monthly premiums for life insurance will vary depending on the type of policy and other factors. Typically, insurers consider the following factors:

• The type, amount and term of cover required.
• The insured person(s) age.
• The applicant’s hobbies and pursuits – if an applicant engages in dangerous activities, the insurer may require a higher premium or exclude claims made as a result of that activity.
• The applicant’s lifestyle – smokers generally pay higher premiums than non‑smokers. Those who drink heavily may also be required to pay higher premiums.
• The applicant’s health – if the applicant has a medical condition that could potentially shorten their life, the insurer is likely to require a higher premium or even decline the application. Insurers will be concerned about obesity and high blood pressure, in addition to existing or past illnesses or medical conditions.

Contact us or request a call back to discuss and receive a quote and advice on your life insurance needs.