Life and critical illness protection

It will never happen to me…

Once you have secured your mortgage, it is crucial to ensure you have the right measures in place to protect your biggest asset.

Life Assurance and Critical Illness Cover

Term assurance is a life assurance contract which pays out a fixed sum of money if you die during the term of the contract. It is designed to help you protect your dependants against financial problems in the event of your death.

Term assurance guarantees a tax-free lump sum if the life assured dies within the specified period in return for a fixed monthly or annual premium.

Should a critical illness option be selected a tax free lump sum is guaranteed if the life assured becomes critically ill or dies within the term of the policy which ever comes first.

How does it work?

  • You decide on the amount of cover you need, this is known as the 'sum assured'.
  • The sum assured will stay the same throughout the term of your plan unless you increase the amount of cover.
  • You decide on the length of time for which you want to be covered, known as the 'term',
  • You pay a regular premium. The amount you pay is worked out according to a number of factors such as your age, state of health, sex, term of contract and any options selected.
  • If you have included critical illness cover, the premium may increase in some cases if you change your occupation
  • At the end of the term the policy finishes and there is no maturity value.
  • If you terminate the policy during the term, there is no encashment value.

Mortgage Protection Cover

Mortgage protection (decreasing term) assurance is a life assurance which pays out a variable (decreasing) lump sum of money if you die during the term of the contract. It is designed to help protect your dependents against the burden of a repayment (capital & interest) mortgage in the event of your death.

Mortgage protection (decreasing term) assurance guarantees a tax free variable (decreasing) lump sum if the life assured dies within a specific period in return for a fixed month or annual premium.

Should a critical illness option be selected a tax free lump sum is guaranteed if the life assured becomes critically ill or dies within the term of the policy which ever comes first.

How does it work?

  • The amount of your repayment (capital & interest) mortgage is the amount of cover you will need, this is known as the sum assured.
  • The sum assured decreases throughout the term of your plan in line with the amount owed on your mortgage.
  • You pay a regular premium. The amount you pay is worked out according to a number of factors such as your age, state of health, sex, term of contract, assumed maximum mortgage interest rate and any options selected.
  • The rate you pay can be fixed and will remain constant throughout the term although the level of cover will reduce during that term.
  • If you include critical illness cover, the premium may increase in some cases if you change your occupation. The level of cover will decrease in line with the decrease in the life sum assured.
  • At the end of the term the policy finishes and there is no maturity value.
  • If you terminate the policy during the term, there is no encashment value

Critical Illness

Few people are aware of the high levels of incidence of the most common critical illnesses, or that many people survive the initial diagnosis and live for many years, although their lifestyle may have to change considerably. 1 in 4 men and 1 in 5 women in their 20's and 30's will suffer cancer, a heart attack or stroke before reaching standard retirement age. (Source: OPCS Cancer Statistics 1989 and Morbidity Statistics from General Practice 1991-92).

People do survive serious illness but very often need assistance to help them recover both physically and financially. The statistics refer to the experience within the UK. 1 in 3 people in Britain will have cancer at some point in their life (Source: Imperial Cancer Research UK 2002.). 1.4 million people in the UK are suffering from coronary heart disease. (Source: British Heart Foundation.)

Critical illness cover has been designed to cover a comprehensive range of illnesses which may include: Alzheimer's Disease, Angioplasty, Aorta Graft Surgery, Bacterial Meningitis, Benign Brain Tumour, Blindness, Cancer, Coma, Coronary Artery Bypass, Deafness, Heart Attack, Heave Valve Replacement or Repair, HIV Aids form blood transfusion, Kidney Failure, Loss of Limbs, Loss of Speech, Major Organ Transplant, Motor Neurone Disease, Multiple Sclerosis, Open Heart Surgery, Paralysis, Parkinson Disease, Stroke, Third Degree Burns, Permanent and Total Disablement. Cover my vary dependent on the provider selected. Please refer to the Key Features document for a full list of the illnesses covered.

Critical illness benefit is designed to protect you and your dependants against such unforeseen changes, by providing you with a lump sum on the diagnosis of a critical illness. It is also an important type of cover for single people, without dependents, who would still need to adapt their lifestyle following a critical illness of permanent and total disability.