Term Life Assurance - www.assurance.uk.com

Term Life Insurance is an insurance policy which has a set duration time limit on its cover period. When the policy has expired, the policy holder must decide whether they want to renew the policy or if they want to terminate the cover. This form of insurance policy contrasts with the permanent life insurance policies, whose period length can extend up to when the policy holder is around 100 years old or dies.

There are a number of different Term life insurances available.

Level term life insurance – this is an insurance policy which pays the beneficiary a one off payment on the occurrence of the death of the insured individual within the life insurance term. When the individual is considering choosing a level term life insurance policy, they must decide how much money they want to be paid to their family in the event of their death and how long they want the policy to fun for. The amount that is assured is a guaranteed amount of money that is paid out on a claim made and will remain unchanged within the length of the policy.

This form of life insurance can be taken out as a single or joint plan. The policyholder is able to pick the required cover they need as well as the length of the plan they want. The level of the cover will stay constant throughout the policy term, as well as the premiums to be paid. The insurance policy does not have a cash-in price at any time.

These policies can be used to pay out for a child’s education, a family holiday or an outstanding loan.

Decreasing term life insurance - this is also called Mortgage Life Insurance.

This type of insurance can also be applied for as both a single or joint policy.

These insurances are specifically designed for protecting repayment mortgages. The cash lump amount that is payable is planned to help someone repay their outstanding balance of their mortgage. The policyholder chooses the length of the plan they want as well as sum of cover they want. The premiums to be paid are constant throughout the policy term, although the cash sum to be paid will decrease on order to reflect the declining mortgage loan. The charge of the policy cover will vary depending on the type of cover and length of the policy term required.

These policies do not have a cash-in price at any time. Therefore, if the policyholder stops paying the premium, they will be no amount paid out from the policy if a claim is made.

A lot of these term life insurance policies are convertible. This convertibility choice enables the policyholder to switch over their term life policy to a whole life policy when they feel that a more permanent life insurance protection would be more suited for their needs. These are automatically renewable each year and will normally have an increased premium.

There are a few different types of convertible term insurances available:

A 20-Year Convertible Term insurance will offer a term insurance protection for a period of 20 years with a guaranteed premium level. The policy can be converted to a whole life insurance policy which will have no additional underwriting.

A 15-Year definite Level Term insurance gives insurance protection for 15 years with a guaranteed level payment and has the option to be renewed afterwards without the need of any proof of insurability at a yearly increasing payment scale. The policy is also convertible with no extra underwriting to a whole life or a flexible-payment insurance policy within the whole 15-year level period up to the age of 65.

A 10-Year Convertible Term insurance gives term insurance security for a period of 10 years with a guaranteed level payment. It is can also be convertible to a whole life insurance policy and not have any extra underwriting.