Assurance covers an event that is certain to happen – usually death in a whole-life policy.
Benefit is what is paid out upon death or other specified event.
Combined critical illness and life insurance policies A combination product is probably cheaper than two separate ones but it may only pay out for the first event. Individual policies would cost a bit more but would pay out for both events and are probably the best idea for total protection.
Critical illness insurance is designed to pay out a lump sum if you are diagnosed with a specified serious illness or if you have to have certain types of surgery.
Decreasing Cover Term policies are often called mortgage insurance. They are usually level premium, declining benefit policies, used for repayment mortgages or loans.
Insurance provides cover for an event that might not happen like fire or a car theft.
The Insured person is the one whom has his or her life insured. They may not be the person (policyholder) who is actually paying the premiums. Compare with Policyholder
Joint critical illness cover is available but it may only pay out for the first of you to become critically ill. You may choose to get separate cover for both of you.
Joint life insurance insures two or more lives. It may pay out on the first death or the second death.
Level Term policies have fixed-cost premiums and benefits that stay the same.
A Policyholder insures a life for a specified term. Compare with Insured.
Premium is the sum paid to sustain the policy. If you default (stop paying), the policy may lapse. The size of your insurance premium will depend on several things, for example, your age, gender, job, general health and whether or not you are a smoker.
Term Insurance is protection for a specified length of time – for example, the length of a mortgage term. It is an economical way of buying life insurance.