Roxburgh Group Life Assurance & Family Protection
Life Assurance is often overlooked by many but remains the single most important contract when considering any financial planning requirement for an individual or a family. A life assurance policy will provide a stated benefit upon the holder's death (sum assured), provided that the death occurs within a certain specified time period.
Level term is the most basic type of life insurance. Normally the cheapest form of life cover, the premium is normally fixed per month for the duration of the policy. The amount of life cover (also known as the sum assured) is guaranteed for a fixed term. The fixed lump sum amount is paid out if an individual dies within the policy period.
This is a form of level term life insurance with the flexibility to convert the policy into a whole life policy or endowment policy at a future unspecified date.
Decreasing term is a lump sum policy that will repay an outstanding balance of the mortgage (also known as mortgage life insurance). This type of life insurance decreases at a fixed rate as the balance of the mortgage is paid off.
This is a variant of level term life insurance. It allows the policyholder to extend the cover for a period of time from the original ending date of the policy.
Increasing benefit is a form of protection against inflation. If you include an increasing benefit option on your policy, the benefits on the plan will increase each year in line with inflation or at an amount agreed on by the insurance providers. It also provides more flexibility, to factor in additional insurance or change in personal financial circumstances.
Family Income Benefit
Family income benefit pays out a regular annual income (actual payments can be half yearly, quarterly or monthly) in the event of death or diagnosis of a specified critical illness, during a specified period for your dependents.
Mortgage protection is a lump sum policy to repay a mortgage (also known as decreasing term assurance). It pays out a reducing sum over a specified period in order to repay a capital & interest repayment mortgage in the event of death or critical illness. Due to the reducing sum insured, the cost of this policy is lower than the level term assurance.
This kind of life insurance pays out only on diagnosis of the insured person having contracted one of a range of specified critical illnesses. These illnesses usually include heart disease, stroke, and cancer. This is not offered as a standard part of a life insurance policy.
Whole of Life Assurance
Whole of life assurance provides protection with or without investment and is designed to cover the policy holder for the whole of your life. This insurance pays a guaranteed sum on the death of the policyholder. This insurance can be without-profits, with profits or unit-linked. In other words, you can choose insurance that pays out on death a guaranteed sum only, the sum plus any bonuses that have been added, or the sum plus any additional value from the growth of the funds invested in.
Guaranteed premiums are usually fixed by the insurer and remain the same throughout the policy term.
Reviewable premiums are reviewed regularly, usually every five years, by the insurance company and can be reduced or increased depending upon their claims experience and other factors.
Life Assurance in Trust
Life insurance can guarantee a welcome payout for your beneficiaries in the event of your death. Placing your policy within a suitable trust ensures any payments to your dependents are not delayed and/or subject to tax. Please note that Trusts are not regulated by the FCA.
Waiver of Premium
Waiver of premium is a form of protection which ensures that if you cannot work in your normal occupation because of illness or injury, the insurance company will pay your premiums to maintain the benefits under the policy.