Term Assurance

Term Assurance is effectively the cheapest form of life insurance in the market place. You pay a premium in return for a specified level of cover, say £100,000 for a particular term, say 10, 15 or 20 years.

Typical examples of when a Level Term Assurance policy would be used:

• to cover an interest only mortgage
• to cover a spouse and / or financial dependants for a specified term 
• for business purposes such as Director Share Protection

Other benefits can be added such as critical illness cover, waiver of premium benefit and you can opt for guaranteed premiums for the term of the plan, meaning that the premium you pay will never increase during the term of the plan.

As there is no investment element associated with a term assurance policy, if you survive the term, you get nothing back. Furthermore these policies have no surrender value and cover would cease should premiums stop being paid.