Level Term Assurance
The level of cover remains the same for the term of the contract, as does the premium.
Convertible Term Assurance
The cover is the same as for level term assurance, but at the end of the term, or with some Companies during the term, an option is available to convert the policy to another plan without any further medical evidence being submitted. The premium will be that which the Company is quoting at the time of conversion for someone of that age.
Decreasing Term Assurance (Mortgage Protection)
This cover reduces every year, and is generally used in conjunction with a mortgage, to repay the outstanding mortgage balance. The interest rate assumed is 6%. Premiums will remain level and the benefit will decrease over the term.
While mortgage protection is the cheapest type of cover it is important to remember that the amount of life assurance you will have will be decreasing as you get older. To fully protect your dependants you should consider, what the financial impact on your family would be in the event of the untimely death of either of you, and whether you will have sufficient cover in place as you get older.
Dual Life Cover
Both lives are covered independently. Separate payouts are possible on the death of both lives assured.
Joint Life Cover
There is only one payout possible, which will be paid on the first death.
Whole of Life Plans
Premiums are kept low in the early years and may rise after periods of review usually after 10/15 years and annually after that. The cover stays in place for the full term of your life provided you pay the premiums.
Children’s Life Cover
This benefit is automatically included on some policies. Children between the ages of 3 months and 18 years are covered for a set amount. There is no extra cost for this benefit.
This type of cover pays a set sum daily after a defined number of days regardless of whether you are a member of a VHI, Quinn or Aviva scheme.