Pembroke Wealth Management: 
term assurance
Term insurance is the cheapest ,and simplest, form of Life Assurance.
It provides cover should you die within a specified period (the term), for example the next 10, 15 or 20 years. If you live longer than the specified period, you get nothing. Couples can also take out a term policy in both their names, with the cover only paying out once if one of them dies during the term.
The cost of term assurance depends mainly of the likelihood of the insurer having to pay out so factors such as your age, sex, state of health, whether you smoke and what job you do will all have an impact.
There are different types of term policy:
•Family income benefit: These are specifically designed to meet the needs of parents and in the event of death provide an income until a fixed time in the future (e.g. the 21st birthday of your youngest child). They come with various options such as adjusting the level of income to protect against the effect of inflation.
•Increasing term policy: The amount these pay out in the event of your death rises the closer you get to the end of the term and they are often used to protect your dependents from the effects of inflation. The rate at which the benefit rises is often linked to the Retail Price Index, and as the benefits go up, so do the premiums.
•Decreasing term policy: The amount these pay out in the event of your death reduces the closer you get to the end of the term, and they are often used to protect your dependents if you have a mortgage ( see Mortgage Protection section) or other large debt. As the loan is repaid, the amount your family would have to pay in the event of your death reduces so the amount of cover you require decreases over time.
•Endowment policy: These are similar to decreasing term cover but include an element of investment. They were once commonly arranged in association with a mortgage where the aim was to provide life cover for the period of the loan, while the investment element was meant to generate sufficient growth to pay of the loan at the end of the period.
•Convertible term: These give you the choice at the end of the term to convert the cover to a different type of contract (e.g. whole of life) or to extend the term.
Term cover is the simplest and cheapest type of life insurance, and other than for increasing term policies, the premiums you pay are usually fixed for the whole period.
For more information on Term Assurance, please contact us