Premium Types

Premium Type

The premium can be guaranteed or reviewable.

If you choose guaranteed then the premium and sum assured cannot change during the term of the policy.

If you choose reviewable then the sum assured or premium can change; e.g. mortality rates improve and the premium may go down or the sum assured up; mortality rates worsen (fear of AIDS epidemic had this effect in the 80's) and the premium can be increased or the sum assured decreased. Reviews tend to take place on the policy anniversary.

Payments

Payments can be by monthly/annual direct debit or annual cheque.

Single, Joint life or Life of Another

The policy can be taken out in joint names and as such will pay benefits on first death. The policy can also be arranged on another persons life but you must have their authority to do this.

Waiver of Premium

For an additional premium (usually about 3% of the initial premium) your monthly payments can be protected should you be unable to work through illness. A typical clause for this benefit is that you must remain ill for 3-6 months before premiums will be met by the life assurance provider.

Trusts

The policy can be written in trust for a named beneficiary. We recommend that all policies are written in trust unless the policy is to be assigned to a lender.

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