A Term Assurance policy is always based over a specific term, meaning these policies have a start and an end date.
All providers include Terminal Illness cover at no added cost. This means that the policy benefit would be available upon death or diagnosis of a terminal illness (typically where you are not expected to survive more than 12 months), during the policy term. However, it is worth noting that this is not always available in the last 12-18 months of the policy. Please see the providers Key Features Document for full details.
Level Term Assurance
The amount of life cover will remain the same throughout the life of the policy, unless you choose to include the Indexation option.
Decreasing Term Assurance
The amount of life cover on a Decreasing Term policy will reduce over the term selected. The amount decreases at an assumed percentage rate, ensuring that the benefit will be sufficient to pay off the debt in full – as long as the interest rate on your debt never rises above this amount.
Family Income Benefit
Rather than paying a one-off lump sum, Family Income Benefit policies would provide a monthly, quarterly or annual benefit from the point of claim until the policy end date.
Such policies can be useful if you are looking to help ensure the funds last the period of time intended at the policies inception.