LIFE COVER
Pays a lump sum, or monthly amount, if you die during the policy term, to help your family stay financially secure.
Why is it a good idea?
Peace of mind for you and your family.
It’s our natural instinct to protect the ones we love. But what if something happens to you? What if you’re no longer around to take care of your loved ones? That’s where life cover comes in.
It pays out to help make sure your loved ones are left with a comfortable home and lifestyle, rather than debts and financial worries.
Taking out cover provides you and your family with peace of mind.
How does it work?
If you die, we pay out. It’s that simple.
Life cover provides a financial payout to your loved ones if you die or are diagnosed with a terminal illness.
We offer 2 life covers, Life Essentials and Life Protection, each designed with different features to meet different needs and priorities.
Together with your Financial Adviser, you decide which cover is right got you, how long you want your policy to last and the amount of cover you need – that’s the amount we pay out if you die.
The amount you pay depends on your age and health when you apply. It’s worth remembering that usually, the younger you are the lower your premiums will be.
Which life cover do I choose?
There’s a choice of 2. Here’s a few examples of how they compare:
ESSENTIALS
Our standard range, delivering quality cover at a more affordable price.
PROTECTION
Our signature range, delivering enhanced cover and quality features.
When they pay out
Both Life Essentials and Life Protection pay out when a policyholder dies but there are other differences in when they’ll pay out:
Terminal illness
Life Essentials pays out if you die or are diagnosed with a terminal illness that is expected to lead to your death within 12 months.
Life Protection pays out if you die or are diagnosed with a terminal illness that is expected to lead to your death within 12 months. And as Life Protection includes our enhanced terminal illness definition, uniquely, we’ll also pay out if you’re diagnosed with incurable stage 4 cancer, motor neurone disease, Creutzfeldt-Jakob disease or Parkinson-plus syndromes even if you’re expected to survive more than 12 months.
Premium Waiver
Life Essentials includes Premium Waiver as standard. We’ll waive your premiums if you’re too ill to work after 26 weeks.
Life Protection includes Premium Waiver as standard. We’ll waive your premiums after 4-weeks if you’re too ill to work. We’ll also waive premiums for up to 6 months for maternity or paternity leave or if you involuntarily lose your job.
These are just some of the differences, to find out more talk to your Financial Adviser before deciding which life cover is right for your needs and budget.
Single or dual life?
Protection for you and your partner
These days its common for families to depend on both parents equally – whether you both work to meet the monthly commitments, or just one of you earns while the other carries out all the essential household tasks that keep the family going.
The truth is death and terminal illness are indiscriminate. If one strikes a breadwinner the family will lose valuable income, and if one strikes a stay-at-home parent the family may need to pay for help, at additional cost, to cope with the upheaval to day-to-day life.
That’s why, if you have a partner – whether they work or not – it pays to consider our dual life approach. It pays out if either partner dies or is diagnosed with a terminal illness, providing the money to make the most difficult of situations easier for all involved. Unlike normal joint cover, if one of you has to claim your partner will still have cover in place and won’t have to try and replace it when they’re older.
What are the cover options?
There’s a choice of 4:
Level Cover
With Level Cover, you choose the amount of cover you want and the length of time you want to be covered. The amount is fixed, and you can also choose whether to receive a lump sum or a regular monthly payment.
Decreasing Cover
Decreasing Cover is designed to cover mortgages and other long-term borrowing. So, as the outstanding borrowing goes down, so does the cover. Because of this, the premiums tend to be lower, and it also only pays out a one-off lump sum.
Increasing Cover
They say what goes up must come down. But what about the cost of living? That only ever goes in one direction. So, to keep up with rising prices, the amount of cover you get with Increasing Cover rises in line with inflation. Unlike Level Cover, the premium increases each year.
Family Income Benefit
Rather than paying out a lump sum if you die, Family Income Benefit gives your loved ones a regular payout for the rest of the policy’s lifetime. So, if you take out a 25-year policy and die 5 years into it, your family will receive regular income for the remaining 20 years. If you were to die 15 years into the policy, it will pay out for the remaining 10 years. But remember, once the policy ends, the cover and the payouts will stop.
Family Income Benefit is only available if you choose our Life Protection.
Which cover is right for me?
Our advice, is get advice.
To discuss whether Life Essentials or Life Protection is right for you, please talk to an independent Financial Adviser. Typically, many don’t charge for their advice, and they will help you find the right combination of products for your needs and budget.
Policy terms and conditions
For more details, view our policy terms and conditions and key facts.
To find out exactly what suits your needs best, speak to a Financial Adviser.
