A glossary of common terms used in UK life insurance

Beneficiary - This is the person who the benefit will be paid to,  which may be the mortgage lender in the case of Mortgage Protection .

Discounted life insurance - This refers to the discounted premiums we offer through electing not to receive full commission.

Key features document -This will explain the life insurance policies features, this is an important document that should be read and fully understood by you.

Guaranteed premiums- If you opt for guaranteed premiums, these will remain constant throughout the term of your life insurance cover, unless index-linking is required. Guaranteed rates do tend to increase the premium.

Family Income Benefit -please see relevant section

Index-linked - Index-linking can be arranged on term life insurance, this will increase the benefits payable in line with an index usually being the retail price index (RPI) .Premiums payable will also increase , this increase usually occurs yearly.

Mortgage Protection - please see relevant section

Personal illustration - This will illustrate the cost and level of cover, this should be read along with the key features document and checked for accuracy.

 

Proposal - This is the application you complete for the life insurance company to consider.

Renewable life insurance - This will provide life cover for a period of time with the option to renew with no further medical evidence,  you do pay extra for this privilege and premium rates are reassessed after this period. These life insurance contracts usually run for a short period of 5-10 years and because of their short term are initially cheaper.

Reviewable premiums - this type of life insurance will reserve the right to review premiums payable at regular intervals, this does usually reduce the initial insurance premiums but can cost more long term if premiums are increased.

Sum assured - This is the lump sum benefit you will receive in the event of a claim or in the case of Family Income Benefit the yearly income you receive.

Terminal illness cover - TIC is sometimes included with life insurance, this will pay the benefit early if you are diagnosed as having a terminal illness with a limited life expectancy . Is not the same as Critical Illness Cover UK.

Term Life Insurance -please see relevant section

Trusts- A trust is used  with term life insurance to identify the beneficiary without giving immediate control to that person. A common reason for using a trust is reducing your potential liability to inheritance tax,  it tends also to enable the proceeds of the life insurance to be paid quicker. If you wish to place your life insurance policy in trust, forms are available from the life insurance company.

UK Life Insurance A web site from Assetguard

Waiver of premium - This provides a benefit to pay your premiums should you become unable to pay due to sickness or illness (definitions do vary). If you choose to add waiver of premium there will be an extra cost.

E-mail info@uk-life-insurance.co.uk                                                     Telephone 020 8797 2837

Affordable UK  life insurance quotes online

UK Insurance Home

 

Term Life Insurance

Mortgage Protection

Family Income Benefit

Other Insurance

Other Finance

Contact Us