Different ways to protect the people who depend on you
The shape of the cover should match what the money needs to do. We help you compare the options.
Level cover
The insured lump sum stays the same during the policy term. Inflation can reduce what that amount will buy.
Decreasing cover
The insured lump sum reduces over time, often to help protect a repayment mortgage. The curve is illustrative: actual policy reductions vary and do not automatically match your mortgage balance.
Family income benefit
With level family income benefit, the monthly payment stays the same. The total payments remaining reduce steadily as the policy end date approaches.
Shows the total of future monthly payments, not a lump-sum payout. Assumes level payments.
Explore family income benefitIllustrations explain the cover structures, not a quotation. Payment depends on a valid claim and the policy terms.
Cover can also increase
Some policies allow the insured amount to increase under their rules. Premiums may increase too. We can discuss this alongside the effect of inflation.
What would the money need to do?
Start with the practical questions. Would your family need to repay a mortgage, replace an income or pay for childcare? How long might support be needed? Existing policies and benefits through work also matter.
One policy or two?
A joint first-death policy usually pays once and then ends. Separate policies can protect each person independently. We can compare the costs and implications rather than assuming one arrangement suits every household.
Decide who should receive the money
We can discuss the insurer's available beneficiary arrangements and whether a trust may be appropriate. This needs care: the right arrangement depends on the policy and your circumstances.
What to understand before applying
Cover depends on the insurer's acceptance and terms. Answer application questions accurately. Term insurance has no savings value and normally pays nothing if you survive the term without a valid claim. Cover can end if premiums are not maintained. Some policies include terminal illness benefits; these are different from critical illness cover and have their own definitions.
Do I need cover if I have death-in-service benefits? Include those benefits in the assessment, along with what happens if you leave the employer.
What if I have a health condition? It is worth discussing the available options. Terms and availability depend on the insurer's assessment.
Related reading: Life insurance with diabetes; What happens to life cover after a critical illness claim?
