Life Insurance FAQs
Frequently asked questions on Life Insurance.
Frequently Asked Questions
- What is the difference between level term life insurance and mortgage protection life insurance (decreasing term)?
- What is waiver of premium?
- Do you offer Critical Illness?
- What are reviewable premiums?
- What happens to the sum assured at the end of the policy?
- Does the policy pay twice the Sum Assured if it’s a joint policy?
- What happens if I suffer from a specific medical condition?
- Will my premiums increase over time?
- Can my policy be written in trust?
What is the difference between level term life insurance and mortgage protection life insurance (decreasing term)?
With level term life insurance the amount of cover remains the same throughout the duration of the policy. If you take out a mortgage protection life insurance (decreasing term) policy the amount of cover reduces each month during the policy term and is calculated to be enough to equal the capital outstanding under a normal repayment mortgage. Premiums remain the same throughout on both level and decreasing term policies.
What is waiver of premium?
Where waiver of premium is selected, the insurer will take over the payment of your premiums 6 months after you become unable to work following an accident or illness. This means that cover continues free of charge to you during extended periods of disability. The waiver of premium claim stops when you are assessed as fit to return to work.
Do you offer Critical Illness?
We offer Critical Illness as an add-on to your level term life insurance or decreasing term mortgage protection policy. We do not offer Critical Illness on a stand-alone basis.
What are reviewable premiums?
We offer guaranteed premiums only on our level term life insurance and decreasing term mortgage policies. This means that the premium remains the same throughout the term of the policy. If you choose to add Critical Illness to your policy you may be able to choose between guaranteed or reviewable premiums. If you select reviewable premiums, the amount of your premium will be reviewed regularly by the insurer. This usually means that at the start of the policy the premium is cheaper than selecting a guaranteed premium but the premium may become more expensive than the guaranteed premium over time.
What happens to the sum assured at the end of the policy?
These policies have no cash in value at anytime. The insurer makes no payment if no claim has been made by the end of the term of the policy.
Does the policy pay twice the Sum Assured if it’s a joint policy?
No, where the policy is in joint names it will pay out on a ‘joint life first death’ basis. This means the insurer pays the sum assured only once and payment will be made in the event of the first death on the policy.
What happens if I suffer from a specific medical condition?
Please note we ensure that all aspects of your application are handled in a sensitive and confidential manner. If you suffer from a specific medical condition you should disclose this during your application. It is dependent on the condition and the insurers underwriting criteria as to whether this will affect the terms of the policy.
Will my premiums increase over time?
If you have taken out a life policy or a life policy with Critical Illness and guaranteed premiums your premiums will not increase during the term of the policy. If you elect to add Critical Illness to your life cover and select a policy with reviewable premiums your premiums will be reviewed by the insurer periodically and may be increased.
Can my policy be written in trust?
You have the option to write your policy in trust. All you need do is indicate in your application that this is your intention, the insurer will then issue you with the necessary paperwork.