We know the world of life insurance has many terms which are confusing. To help you better understand we have listed the terms and their corresponding explanations below.
Accidental Death Benefit
This covers you if you die within 90 days after an incident. This is typically offered during the period in which your life cover is not fully active as the insurer is still conducting their due diligence.
The life insurance protection provided by your chosen policy.
Critical Illness Cover
Cash sum offered if diagnosed with a specified critical illness during the term of the policy.
Decreasing Term Assurance
Cash sum offered if you die during the term of the policy. The amount of cover reduces over the period of the policy, typically in line with the mortgage repayment.
Guaranteed Insurability Option (GIO)
GIO lets you increase the amount of cover without the need for further medical evidence. You can do this on certain life occurences.
The premiums are guaranteed through out the length of the policy unless you altered the cover.
The plan covers two individuals. But it ceases to exist once the first pay out has been made.
Level Term Assurance
Also known as life insurance, life assurance and life cover. It pays a lump sum amount if you die during the term of the policy
These documents are sent out by the insurance company after the cover has began. This includes the Policy Schedule, the Policy Terms and Conditions and details of the cover and premium.
The amount you pay for receiving life cover. You can typically pay these monthly or annually- annual payments often have a discount added.
Terminal Illness Cover
Typically provided at no extra cover, Terminal Illness Cover allows for the policy to pay out as soon as the terminal illness diagnosis is confirmed.
Waiver of Premium
Premium is waived in the event that you are too ill/injured to undertake normal work for 26 weeks or more due to incapacity.
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