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Protection
Term Assurance
There are many different forms of term assurance, each one offering you life cover for a specific term:
Level Term cover will pay out a lump sum on death. If you wish to keep premiums to a minimum, the duration of cover can be restricted to a specific term that can coincide with a specific event.
Family Income works the same as a Level term policy, but an income benefit can be paid rather than a lump sum. Once again the term of years can be chosen to coincide with a specific event. It will provide a regular income each year, from the date of death, until the chosen expiry date.
Mortgage Protection is a type of Term Assurance policy. The initial amount of life cover reduces each year, to coincide with the outstanding capital debt on a mortgage
Convertible Term Assurance will provide some protection against changing circumstances, however the term assurance is convertible. This means for example, that should you fall ill near the expiry of the policy term, you can convert the policy into a whole of life plan, regardless of your then state of health.
Renewable Term Assurance - A normal term policy will laps at a chosen date and you could be uninsurable were you to subsequently fall ill. To provide protection against this, a renewable policy allows you to replace your original policy at the end of its term, regardless of your state of health
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