Life and Critical Illness Cover

It is possible to ensure against three major categories of event: Death, a critical illness and sickness or injury sufficient to prevent you from working. In all cases there are a number of ways of insuring against the risk.

Payout on death

Term Assurance

This type of policy provides a lump sum payment on the death of the life assured. The level of cover, term and premium are fixed from outset.

Whole of Life Assurance

A Whole of Life Policy is a life assurance contract that has no specific term. It provides life cover for as long as you wish to continue to pay the premiums required. This is a flexible policy under which you can select the most appropriate premium and cover level.

The selected premium is invested into a unit linked managed investment fund and each month a deduction is made from the fund to pay for the cost of life cover. The level of premium selected will dictate how long the amount of sum assured on death will be able to be maintained, without a change in premium.
The investment growth rate within the fund will also be a factor as this could lead to benefits being maintained for longer or shorter period, if the performance of the fund is higher or lower than the rate assumed for calculation of the premium.

Mortgage Protection Assurance:

Sometimes called a decreasing term assurance policy. This type of policy provides cover for the original level of the mortgage but then reduces as the mortgage balance reduces. This keeps the payments to a low level.

Critical Illness Cover

This type of protection pays either a lump sum benefit or can provide income payments. Payout is made on diagnosis of critical illness.

The main illnesses covered include Cancer, Heart Attack, Kidney Failure, Stroke Coronary Artery Disease, Major Organ Transplant as well as approximately 15 other serious illnesses.

Critical Illness policies can be written for a specific term or on a whole of life basis.

The information on this site is for general guidance only. Foyle Financial is an appointed representative of the M & E Network Limited, which is authorised and regulated by the Financial Services Authority. The M&E Network is entered on the FSA register (www.fsa.gov.uk/register/) under reference 150643.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.