The Sum Assured or Lump Sum on Death benefit should match the amount and term of your mortgage at the start. The amount of Lump Sum on Death benefit and Accelerated Specified Illness benefit (if selected) will reduce gradually over the term.
Cover can be taken out on a single life, joint life or dual life basis. If the policy is taken out on a joint life basis, the policy pays out once on the first to die of the lives insured. If the policy is taken out on a dual life basis, two lives are covered independently of each other under the one contract, so the benefit can be paid twice.
As the Sum Assured or the lump Sum on Death decreases in line with your mortgage, this type of cover is significantly cheaper than Level Term Assurance where the benefit remains level throughout the term
Accelerated Specified Illness
A lump sum amount payable if the life insured is diagnosed with one of many specified illnesses covered during the term of cover. This benefit also provides for a partial payment if the life insured suffers from other illnesses of lesser severity during the term of cover. The Lump Sum on Death benefit will be reduced by any amount claimed under the Accelerated Specified Illness benefit.
Medical Free Conversion
This provides the option to extend the term of cover or take out a new policy at any point during the term of cover without having to provide evidence of health.