No matter what your situation, it’s likely you’ll need protection against death, critical illness or disability. At Wells Financial, we’ll carefully assess your needs along with any existing cover you may have. We’ll then present you with a plan that meets both your life insurance needs and your budget.
This makes sure that your dependants have the money to repay the full loan if you were to die. There are two main types of life cover:
Level term assurance
You can use this cover to protect you, your family, your mortgage or a business, for a fixed monthly premium throughout the term you have chosen. The amount of life cover you have chosen will be paid out as a lump sum if you die within the term. This would typically be taken out alongside an interest only mortgage.
Decreasing term assurance (mortgage protection)
This cover is typically used to protect a repayment mortgage and is usually cheaper than Level Term Assurance. The plan provides a guaranteed sum of money if you die within the term. The amount decreases over the term of the policy roughly in line with your outstanding mortgage debt.
Options typically available with term assurance
Waiver of premiums
In the event of long term ill-health, either through sickness or accident your premiums will be paid by the insurer.
Terminal illness cover
If you are diagnosed with a terminal illness and are eligible to claim during the plan, and are given less than 12 months to live, your policy will pay out a lump sum to help you to sort out your finances. This cover does not normally apply during the last 18 months of the term.
Critical Illness Cover
Critical Illness Cover (CIC) will pay out a lump sum if you are diagnosed with one of the specified critical illnesses and are eligible to claim. Most CIC insurers cover over 40 illnesses, typically including heart attack, stroke, cancer, kidney failure, major organ transplant, coronary artery bypass surgery and multiple sclerosis.