Glossary

Level life insurance - is life assurance that pays out a set amount if you die within the term of the policy.

Mortgage protection - The premiums won’t change during the lifetime of the policy (unless selected reviewable premiums) but the amount that will be paid when you die will reduce starting from the amount of cover you specify, and ending at zero by the end of the term.

Critical Illness Cover is assurance that pays out if you are diagnosed with an illness specified within the policy. It is designed to help you adapt if your life is changed by an illness.

Income protection - is designed to pay an income in the event of long term illness or incapacity, resulting in your inability to continue to earn income as a self employed person or as an employee of a company.

Guaranteed: Premiums will remain the same for the entire plan term (unless you have selected the 'indexation' option).

Reviewable: Premiums are 'reviewed' (and usually increased) at regular intervals (generally every 5 years) by the insurer as stated on the detailed quotation or in the Key Features document.

Wavier of premium - Taking this option means that if you are unable to work for at least 6 months then after this time the insurer will pay the premiums for you to maintain your cover for the remainder of your time off work.
This option only adds a small amount to the cost of your policy.

Indexation - This option means the sum assured and premiums will increase each year. This helps protect the benefits against the effects of inflation.