Life Insurance Policies Explained


Providing information you need to best protect your loved ones

Tell me about Life Insurance

The intention of life Insurance is to protect your loved ones future in the unfortunate event that you die. Life cover will pay out a lump sum to your chosen loved ones if you die during the policy term. This can provide financial support to pay off the remaining mortgage or pay for your children’s university fees for example.

There are two types of life Insurance; level term and decreasing term. Level terms pay-out is fixed at your chosen cover value no matter what stage during the policy term the claim is made. Decreasing term pay-out decreases in line with your future debts, such as mortgage repayment.

You and your partner can purchase joint life insurance, which pays one lump sum for the first death. Two single policies can reduce your risk by covering both policyholders individually. If both policyholders were to die within the policy term there would be two pay-outs.

To help you decide what policy is right for you we have put together some handy case studies.

What additional cover does Critical Illness provide?

If you are diagnosed with a listed critical illness you could need additional financial support for a life-changing event, or find that you are negatively affected by being kept out of work. Critical Illness will pay-out upon diagnosis so you can receive support then and there.

If you made a claim on your Critical Illness then your Life Insurance would continue as normal, which provides added protection.

Cover limits

The maximum cover we can offer you is based on both your age and the product, whether life insurance or critical illness cover.

Maximum cover limits

(Per person, not by policy)

Maximum cover levels – Critical illness cover

AgeUp to 4041-5051-5556-6061-65
Minimum Cover£5,000£5,000£5,000£5,000£5,000
Maximum Cover£750,000£500,000£300,000£125,000£75,000
AgeMinimum CoverMaximum Cover
Up to 40£5,000£750,000

Maximum cover levels – Life Insurance

AgeUp to 4041-5051-5556-6061-65
Minimum Cover£40,000£20,000£10,000£10,000£10,000
Maximum Cover£750,000£500,000£300,000£125,000£75,000
AgeMinimum CoverMaximum Cover
Up to 40£40,000£750,000