For
other cover insurance go to Mortgage
Insurance
Term
Cover Car
Cover
Life
insurance
Also
known as term
assurance, death insurance, term
or term life insurance. This will not be an investment
but be only activated if the policy holder dies within
the term of the policy, the younger the policy holder
generally the lower the monthly premium.
This may depend on age, sex, alcohol, smoking, job type,
family history and weight to height ratio. Some clients
may be uninsurable if they have had a severe medical condition
or if accepted the policy payments can be loaded and high.
The
policy payout generally may cover at least the mortgage
and if a family is involved then a surplus amount should
be added to maintain a families' needs after death of
a person whom was contributing to the family income.
The
policy may be linked to a mortgage and with a capital
and repayment mortgage decreasing term maybe used which
is a lower rate, however the payout on claim will be lower
as it decreases inline with the mortgage. Level term will
stay static unless it is indexed linked to accommodate
inflationary pressures. Waiver of premium can be added
to protect against non-payment in the event of sickness
or loss of employment.
Placing
a policy in trust maybe a tax advantage if it is assumed
the assets of the policy holder will be over the government
limit for inheritance tax. This means that if the limit
is exceeded the family potentially may not pay tax on
the life insurance in place under a trust scheme which
is taken out at the same time as the term insurance.
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