Life Insurance

• Covers against: Death • Type of benefit paid: Lump sum With a Decreasing Life Insurance policy (also known as a Mortgage Protection Policy), the amount of cash paid out in the event of death decreases over time. These policies are usually taken alongside a repayment mortgage so that the amount paid out is the same as the amount left on the mortgage. The premiums for a decreasing life insurance policy are typically cheaper than they are for a level life insurance policy as the amount of cover decreases over time. The payments are not subject to income tax (under current legislation). The premiums for this policy can be either fixed and guaranteed from the outset, meaning that they won’t change throughout the life of the policy, or they can be reviewable.

• Covers against: Death • Type of benefit paid: Regular monthly or quarterly payments Family Income Benefit (FIB) is a type of life insurance and can offer a cost-effective way of arranging the financial cover you need for your loved ones. Policies run for a set period of time known as the term. On the death of the life assured, the Insurance company will pay out a series of payments to the beneficiary. The payments are usually made monthly or quarterly from the date of death until the end of the policy term. This type of policy is a form of decreasing term assurance and after a successful claim, pay-outs will be made until the term of the policy ends. This means that if, for example, a claim is made after 10 years of a 20-year policy it will continue to pay out for another 10 years; if the claim was made 15 years into the policy term it would pay out for five years. The payments are not subject to income tax (under current legislation). The premiums for this policy can be either fixed and guaranteed from the outset, meaning that they won’t change throughout the life of the policy, or they can be reviewable.