Level Term Assurance will retain the same level of cover from inception throughout the life of the policy.

Conversely, Decreasing Term Life Assurance (mortgage protection) provides life cover on a decreasing basis in line with a capital repayment schedule, usually the repayment of an individual’s mortgage. The rate of decrease each year is often directly linked to the interest rate assumed.

Critical Illness Cover can be taken out as a standalone policy or with life assurance. Critical Illness Cover will pay a lump sum benefit to the insured life or nominee on diagnosis of a number of specific critical illnesses e.g. Cancer, Stroke, Heart Attack, Blindness, Loss of a Limb etc. These policies tend to have higher premiums than life assurance policies as an individual is five times more likely to be diagnosed with a critical illness than die before the age of 65.

Whole of Life Assurance is usually a combination of life assurance and investments that do not have a maturity date. Regular payments made to the policy are invested into a with profits or unit linked investment fund that will grow in line with the underlying assets held. Each month a premium will be deducted from the fund value to provide a certain level of cover. Therefore throughout the duration of the policy there could be a surrender value associated to the investment made.