Also known as Mortgage Protection, usually taken out with a Repayment mortgage this policy provides life assurance that reduces in line with the decreasing mortgage debt. The policy pays out a lump sum in the event of death, which is used to repay the mortgage. There are no savings with a mortgage protection policy, it purely provides life insurance.
This type of life cover is usually taken out with an Interest only mortgage. The cover amount remains level in line with the mortgage debt. The policy pays out a lump sum in the event of death, which is used to repay the mortgage. There are no savings with a level term policy. It purely provides life insurance.
This type of cover can be included as a benefit with either a Decreasing Term or a Level Term life insurance policy. The exact definitions can vary from one provider to another, however it usually pays out if a terminal illness is diagnosed where the insured person is not expected to survive for 12 months.
Critical Illness Cover (also known as CIC) can be taken out either on either a Decreasing or level basis. It is an insurance policy which will pay out on diagnosis of a Critical Illness as defined in the policy terms. The illnesses and definitions vary considerably between providers. There are no savings with a Critical Illness policy.
Accident Sickness and Unemployment Insurance
Insurance which pays a specified amount for up to 12 months if the insured person is unable to work due to Accident Sickness or Unemployment.
Insurance which pays a specified amount per month for the term of the insurance, if the insured person is incapacitated. They are also sometime called Permanent Health Insurance (PHI) policies.
Insurance which pays a specified amount for up to 12 months if the insured person is made redundant.
Family income benefit
Insurance which pays a specified amount per month to the insured persons family for the term of the policy if the insured person dies.
Buildings & contents
This insurance is designed to cover damage to the property and/or its contents in a variety of specified scenarios. Most Lenders insist on at least Buildings Insurance being taken out. If the Lender's own insurance is not taken they will often charge an administration fee.