Protection

Life Assurance – there are two main types of life insurance; Term Life Insurance of Whole of Life Insurance. Due to cost, term insurance is often a more popular option.

• Provides coverage for a specific period (term), typically 10, 20, or 30 years.
• If the insured person dies within this period, the policy pays out a death benefit to the beneficiaries.
• If the insured survives the term, the coverage ends, and no benefit is paid.
• Premiums are lower because it only covers a limited period and does not accumulate cash value.
• Ideal for individuals who need coverage for a specific period, such as until their children are grown or their mortgage is paid off.
• Provides financial protection during high-need years.
• Fixed premiums for the duration of the term. A conversion option

• Provides coverage for the insured's entire life, as long as premiums are paid.
• Guaranteed death benefit payout whenever the insured dies.
• Generally more expensive than term life insurance.
• Suitable for individuals who want lifetime coverage and are interested in building cash value.
• Often used for estate planning, ensuring that beneficiaries receive a guaranteed benefit.

Choosing between the two depends on individual financial goals, coverage needs, and budget. Term life insurance is often recommended for those seeking affordable, temporary protection, while whole life insurance suits those looking for lifelong coverage and the ability to accumulate savings within the policy.

• Specifically designed to pay off the outstanding balance of a mortgage in the event of the policyholder’s death.
• Mandatory for Mortgages: Often a requirement by mortgage lenders to ensure the loan is repaid if the borrower dies.
• This insurance usually lasts for the same period as the mortgage. Coverage decreases over time in line with the mortgage balance (also known as decreasing term insurance). Alternatively, a level term policy means that the benefit amount remains constant over the term of the policy.

• Provides regular income replacement if the policyholder is unable to work due to illness or injury.
• You can take out Income Protection cover of up to 75% of your earnings.
• Not everyone needs their income to start as soon as they’re out of work. If your employer pays you sick pay, you might only want your money to kick in after that. The time in between when you stop working and when we start paying you is called your deferred period. You can choose how long this is: 1, 2, 3, 6 or 12 months (4, 8, 13, 26 or 52 weeks). The longer you wait, the lower your premiums will be.
• Your income protection plan can provide cover to you up until your retirement age. The earliest age is 55 and the latest is 70.