Mortgage insurance is specifically designed to pay off your mortgage if you die. This type of policy runs for the same length of time as your mortgage, and the cost of the premium you pay each month depends on the size of your mortgage as well as your age, whether you are a smoker or non-smoker and your health status. As your level of cover is designed to decrease in line with your mortgage loan it is the most cost effective type of life cover.

Life cover pays out a tax free lump sum of money if the individual or the individuals insured dies within a certain time period i.e. during the term of the policy. It is a tax free sum and it can be used for a number of reasons. For example, to protect your loved ones financially if you die, ensure the financial survival of your business, in the event of the death of a key employee or director, repay any loans – e.g. Mortgages, bank loans, credit cards, liabilities etc.

Serious illness cover pays a tax free cash lump sum if you are diagnosed as suffering any illness from a specific list of illnesses that the relevant life company provides. The purpose of specified serious illness cover is to provide a lump sum if you are diagnosed with one of the specified serious illnesses covered during the term of the policy. A claim will only be paid based on the specified serious illness cover definitions which state the exact conditions which must be met for a claim to be paid.

Income Protection (also known as Permanent Health Insurance or PHI) provides you with a replacement income in the event that you are unable to work due to any accident, illness or disability. The payment will commence once you have been disabled for a set period of time (known as the ‘deferred period’). These payments will continue until you have recovered and are fit to return to work, or until your chosen retirement age if you are unable to go back to work.