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Types Of Term Assurance
There are several types of term insurance,
some of which are detailed below.
Level term insurance is designed to pay out a sum of
money if the policyholder should die during the term
in which your policy runs. When choosing your policy,
you should choose the amount you want paying out (the
sum insured) and the length of time for which the policy
is to cover (the term). The sum assured is guaranteed
at the outset and remains unchanged through out the
term.
Decreasing term insurance (often called 'Mortgage Protection')is
where the sum assured decreases over the term of the
policy. This is commonly used to protect a capital &
interest repayment mortgage, where the outstanding balance
reduces each year.
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Term
Assurance Guide
