Definitions for "Term Assurance"
Related Terms:
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This is a life assurance policy taken out for a specified period, after which it then lapses.
This is the simplest form of life assurance. The insured person is covered against death within a fixed period depending up on the payment of the premiums. If an insured person dies within the policy term the sum assured is paid out. If the insured person survives the term the premium has been spent and the insurance ends with nothing being paid to the policyholders.
A Mortgage Protection policy (a type of Decreasing Term Assurance) is normally used in conjunction with a repayment mortgage. Normally at a lower premium than Level Term Assurance, this type of policy is designed to provide protection in line with the decreasing sum owed to your lender. If you choose to pay your premiums on a regular basis, these would normally be calculated to be level throughout the term.
This is life assurance which pays out the insured sum on the death of the policy holder providing it occurs within the policy term. This is a common method to protect the mortgage in the event of death and to ensure that the mortgage debt is repaid. The most common types of this insurance are Mortgage Protection or Level Term Assurance. Mortgage protection is normally used in connection with a capital and interest mortgage and the level of the insured cover reduces in line with the reduction in the mortgage debt. Level Term assurance is more likely to be used in connection with an interest only mortgage as the level of cover remains constant as does the mortgage debt. With Term Assurance cover there is no pay-out if the policyholder survives the policy term and the policy simply lapses with no value. This factor makes this type of cover relatively inexpensive.
An insurance policy that pays a fixed amount of money if you die during the term of the policy. The Financial Services Authority does not regulate advice on all term assurance contracts, although it does regulate the financial soundness of insurance companies. back
The simplest form of life assurance. The insured person(s) are covered against death within a fixed period subject to the payment of the premiums as they fall due (monthly or yearly). If an insured person dies within the policy term the sum assured is paid out. If all insured persons survive the term, the premium has been paid then the insurance ends with nothing being paid to the policyholder(s).
The same as term insurance. The policy pays out if you die within a specified time period.
A life assurance policy that pays out a lump sum in the event of a claim within the term of the plan. Usually there is no surrender value and no lump sum payable unless in the event of a claim. This is pure insurance.
This will protect your family by repaying your mortgage should you (or your partner, if the property is jointly owned) die
An insurance policy that is designed to pay out a lump sum in the event of Death and/or critical illness during a specified period.
This insurance can repay the mortgage in the event of the insured person's death.
This is the generic term for the various types of life cover plans available which do not have an investment element, and have a specified term. These type of plans are pure protection plans and there is no investment element, all they are designed to do is provide the life cover for the desired term. At the end of the term no payment is payable to the policyholder, as there is no investment made as there would be with an endowment for example. The advantage of Term Assurance is that it is the cheapest and most straightforward type of cover. Please note that Term Assurance is sometimes used to mean a Level Term Assurance policy
Life insurance which will provide a lump sum payment in the event of death. This is essential for sole practitioners and husband and wife practices and, in these circumstances, the policy will be assigned to GPFC. In all other instances where we will not insist on an appropriate Term Insurance policy being effected we would recommend that all applicants review their current life cover arrangements, in conjunction with their GPFC mortgage(s).
This is an insurance policy taken out by the borrower at the time of taking out the mortgage, which would pay the mortgage off completely if they were to die before the end of the contract.
Term assurance is very similar to a whole life policy with the exception that it is valid for a specific term, which you agree with the life assurance, say ten or twenty years. This means that should you die within this period the policy will pay out the agreed amount to your next of kin or beneficiary. Term assurance is usually bought to cover debt, for example if you buy a house, a car or even a business, on credit and you want to ensure that your family don't inherit this debt. The benefit that is paid out, therefore, goes towards covering your debt. Should there be a balance it will go towards your next of kin.
A type of Life Insurance policy issued for a set term that will expire at the end with no payout if the policyholder or beneficiary is still alive. Because there is only a payment following a death, this type of insurance contract is relatively cheap to buy.
Term Assurance is a life insurance policy which covers the life of a person in monetary terms in return for a payment, usually monthly, and known as a premium. Term assurance is the cheapest and simplest form of life cover, providing life assurance for a fixed term only. The sum assured is payable only if the life assured dies within that term. There is no investment value to the policy at any time.
The insured person or persons are covered against death within a fixed period of time subject to the payment of premiums as they fall due.
A payment for life assurance through a members pension contributions. Up to a maximum of 1/11th of a member's total contributions may be used to provide life assurance.
A life insurance policy which provides a lump sum in the event of the death of the policyholder or life assured during a specified period.
This insurance repays the mortgage in the event of the insured person's death. Also known as: Life Policy.
This is the simplest form of life assurance. It pays out the sum assured on the death of the policyholder as long as it occurs within the term of the policy. This is mainly used in conjunction with capital and interest mortgages. In particular the policy is known as a mortgage protection assurance. This version of term assurance has cover which reduces in tandem with the reduction in the mortgage amount owing. Some borrowers prefer to use level term assurance which does not reduce. The means that there would be a capital sum left over if they died in the later years of the mortgage. If the borrower lives to the end of the mortgage term the term assurance cover simply expires and has no value. As this is a protection only contract premiums are relatively inexpensive.
This is life insurance cover for a fixed period of time.
A form of life assurance for a certain period of time which pays a lump sum on death.
Life insurance to pay off a mortgage if the borrower dies.
This is an insurance policy designed to repay the mortgage on the death of the insured person. Level Term Assurance covers a principal sum throughout the policy term and pays out the full amount on death. Reducing Term Assurance is designed to repay the balance outstanding on a repayment type mortgage upon death. Term Assurance may also pay out early on the diagnosis of a terminal illness.
Same as Temporary life assurance.
a life assurance policy that pays out a lump sum on the death of the life assured within the term of the plan.
These plans provide insurance cover only and do not have any element of investment. They provide an extremely cost efficient method of protecting a commercial mortgage.
A life assurance policy without investment content which lasts for a specified period, provides a guaranteed sum assured in the event of death within that period, and terminates at the agreed date.
This insurance repays the mortgage in the event of the insured person's death or diagnosis of a critical illness.
A simple life assurance policy that pays out on death of the customer during the time period specified by the policy.
An assurance under which cover is limited to a specified period.