Optional Extras

for Life Insurance Cover

There are quite a few options that you may wish to consider, brief details are provided here but for full information you should always get a quote from us and read through the supporting information before deciding.

The more common options are detailed below:

Critical Illness Cover

This is one of the most popular optional extras but should not be confused with Terminal Illness Cover.

Put simply, a standard life insurance policy pays out on death. If you add critical illness cover then the policy will also pay out if you were to be diagnosed with one of a number of specified conditions such as heart attack, cancer, stroke etc.

Typically around 30 conditions are covered but this varies from one insurance company to another. The pay out is not dependant on your life expectancy; as long as you meet the definition of the illness you will get the payout, even if you can still work or lead a relatively normal life.

The money could be used to reduce or repay debts, replace your income or meet medical expenses and is designed to give you time to recover from your illness and adjust your work or lifestyle to suit your needs and abilities after your illness.

To get more information on critical illness cover and see how the cover varies between life insurance companies please see our critical illness section. More information is also available with your quote.

Guaranteed/Reviewable Premiums

Almost all insurers offer guaranteed premiums with their life insurance policies. This means that the premiums are guaranteed not to change during the term of your policy.

Some insurers also offer reviewable premiums. Reviewable premiums can look cheaper initially but remember that premiums are reviewed periodically and may well increase making it more expensive in the long run.

Terminal Illness

This is included at no extra cost in all of our term assurance plans, but it should not be confused with the more comprehensive Critical illness cover. Terminal Illness cover typically allows the cover to be paid out early if you are diagnosed as having less than 12 months to live.

The exact wording can vary slightly between life assurance companies, more information can be found in the policy details once you get a quote.

Waiver of Premium (WOP).

If you cannot work as a result of an accident or injury the monthly premium is waived by the insurance company until such time as you are fit and able to return to work. This can help make sure that your valuable life insurance cover is maintained even if your income has reduced or even stopped altogether.

You will pay a small extra monthly premium to include Waiver of Premium cover.

Waiver of Premium cover is also known as: waiver of premium benefit, waiver of contribution, premium protection.

Indexation

This can be added to any Level term Assurance or Family Income benefit policy. Essentially the amount of cover you have will increase every year by either a small fixed percentage or by one of the inflation indexes (RPI, NAEI etc). This is designed to ensure that the value of your life insurance cover is maintained in the face of inflation. Your premium will also rise every year by the same percentage as your cover.

Guaranteed Insurability

This is included in most term life insurance plans at no extra cost. Typically this option will allow you to increase the cover provided in your term assurance plan without any underwriting in the event that you move home, get married or have a child. This can be useful if you have suffered any deterioration in your health since you first took out your plan as the insurance company has to give you the extra cover on the same terms as your original plan, regardless of your state of health.

Please check your quote and supporting information for full details.

Separation Option

This applies to joint life policies where two people are covered under one plan. If the couple were to separate then this option would allow them to set up new individual plans in their own names to the same level of cover as previously provided without any medical underwriting.

This can be a convenient way to guarantee your cover even if you were to suffer deterioration in your health.

Reinstatement Option

This applies to joint life policies where two people are covered under one plan. If one party were to die then normally there would be a pay out and the policy lapses, leaving the survivor with no life insurance cover. This option allows the survivor to reinstate their lost cover without the need for any medical underwriting.

This can be a useful way to guarantee your cover even if you were to suffer deterioration in your health.

Trusts

A Trust is a form of legal documentation that should be considered whenever taking out a life insurance policy. They are quite simple to set up and we can provide all the documentation you will need.

Trusts are used to avoid paying Inheritance Tax on the proceeds of a UK life assurance payout and to speed up payment of the proceeds by avoiding Probate.

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