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Life insurance

Life insurance for the people who depend on you

Life insurance can pay a lump sum if you die during the policy term. It can help those you leave behind deal with financial commitments at a difficult time.

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Cover structures

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

Level cover over a policy termThe insured lump sum stays level from the start to the end of the policy term. This does not indicate a maturity payout.Insured lump sumStartEndPolicy term

The insured lump sum stays the same during the policy term. Inflation can reduce what that amount will buy.

Decreasing cover

Illustrative repayment-style decreasing coverThe insured lump sum follows a normalised 20-year repayment-style curve at an illustrative eight percent nominal annual rate with monthly repayments, reducing gradually near the start and progressively more steeply toward zero at the policy end. It is not an actual mortgage balance, quotation or insurer reduction schedule.Insured lump sumStartEndPolicy termIllustrative repayment-stylecurve

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

Total future family income benefit payments over a policy termA straight line declines from the initial total future monthly payments to zero at the fixed policy end. It shows the undiscounted total of future level monthly payments if a valid claim occurred at each point, not declining monthly payments and not a lump-sum payout.Total future paymentsStartEndPolicy termIf a valid claim occurredat that point

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 benefit

Illustrations 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?

Read our Protection Standard

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