Definition of Term Insurance


Life Assurance
Life assurance products can be broken down into two separate categories, protection and investment, though the investment element will contain at least an element of protection.

Life companies, or more correctly life offices, too can be broken down into two types, Mutual and Proprietary. Mutual offices are owned by their 'with profits' policyholders, who are allocated the profits, while proprietary companies are owned by their shareholders and Contractors

Investment policies can either be with profits or unit linked. Traditionally, all policyholders shared in the with profits fund. This is a large fund where the managers declare bonuses annually, and try to maintain a balance between those who have policies maturing and those whose policies remain in force. This ensures a relatively even pay out to policy holders year after year. In the early 1960s, a new type of policy was introduced - unit linked. Here the policy monies are invested in the units of specified funds; the policy holder knows how many units have been allocated and the value can be calculated. The advantage is that in good years on the stock market, unit linked policies will reflect the true value of the underlying assets and the policy holder will benefit. There is however no adjustment in years when the stock market does badly and the policyholder suffers.

Most quotations for salon insurance are provided on a "package" basis and include "Treatment Risks". The details of the cover will be clearly identified to you in the quotation your receive by email.

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Life Assurance - Protection

Protection policies will insure against something happening within a given period known as the term and will pay out either an income or a pre-determined capital amount should the specified event occur during the term of the policy. For example you may take out a term assurance policy to provide a family with shareholder insurance protection against the death of the principal breadwinner while the children are still young. If the breadwinner dies within the specified period, a lump sum is paid to the family. If the breadwinner survives then the policy becomes worthless and the family receives nothing.

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These term policies are relatively inexpensive but premiums will be determined by the life insured's age and medical condition, whether he or she is in a hazardous occupation and whether he or she smokes.

Policies may be written on the life of an individual or on the lives of husband and wife for example, in which case there may be an option to pay out on the first death or only after the second death.

Examples of Protection Policies

Term Assurance - Provides a lump sum on the death of the life or lives assured. If no death occurs in the term, then the policies simply lapse, with no value.

Family Income Protection - Provide an income in the event of the death of a parent. These policies are designed to allow for the employment of a nanny or helper to look after the children while the surviving parent is at work, or provide an income should it be the principal breadwinner who dies. The policy will provide cover against death during a fixed term and will cease at the end of the term without value.

Decreasing Term Assurance - Designed to provide for the repayment of any outstanding loan on a repayment mortgage. The payout will normally be made on the death of one of the mortgagees. Premiums will not normally fall as the sum insured gets smaller. There is no value to the policy once the mortgage has been repaid.

Convertible Term Assurance - Is designed to provide basic term assurance cover at outset with the option to convert to other types of policy in later years as circumstances change. There will be restrictions on the types of policy which it can be converted to and on the dates when conversion is allowed. Normally, conversion can take place without any additional medical examination.

Compare your current policies against our specially reduced Shareholder Insurance premiums.

We have special rates for motorcycles, classic cars, vintage cars, and high performance cars. We can arrange insurance for commercial risks including property, stock, liability, vehicle fleets - for any size of business, we even insure a museum !

We deal with almost every type of general and commercial insurance you can think of, like anyone there are a few that we specialise in. You will find here a list of some, though not nessecarily all of the types of insurance that we deal with.

See Also

--------  Term Insurance Explained in plain English

Term life insurance is the most basic form of life insurance and is the least expensive means of insuring a life. Term insurance covers you for a fixed period and only pays out a single lump sum of money if a person dies during the policy term.  see: Definition of Term Insurance

A number of term insurance policies offer additional options. These include for example critical illness cover (see: Critical illness cover is it worth it - This is Money).

One advantage of adding critical illness cover is that the term insurance plan will pay out on diagnosis of an illness that is life threatening

To obtain some term insurance illustrations which will show what the costs will be to protect yourself then please complete the application form and we will come back to you with some personalised figures or if you have any questions that you would like answered then please feel free to either email or call free on 998 005 5522, we are here to help and look forward to assisting you soon with your insurance

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