The purpose of life insurance is to provide a source of income for your children, dependents, or other beneficiaries. Life Insurance policies will pay your family either a lump sum or a series of smaller sums in the event of your death or if you are diagnosed critically ill.

Knowing you have a comprehensive life insurance policy in place will provide peace of mind for both you and your loved ones.

People tend to look for Life Insurance for 2 reasons:

i) To Protect Your Mortgage

You are looking for a lump sum to cover your mortgage balance if you die or are diagnosed as terminally ill.

ii) To Protect Your Family

You are looking for a lump sum to be paid to your loved ones if you die or are diagnosed as terminally ill.

 

Decreasing Term (otherwise know as mortgage protection) is commonly used to protect capital and interest repayment mortgages where an outstanding balance decreases each year. This can be taken out on your own or jointly with your partner. The cash lump sum is designed to pay off the outstanding balance of your mortgage.

Level Term policies simply pay out a sum of money in the event of the policyholder’s death during the term of the policy. When deciding on a level term you need to select how much cover you require and how long for the policy will cover you. The sum insured remains the same throughout the whole term of the policy.