0800 634 4846

Can we help?

Call 0800 634 4846

& arrange your no obligation initial consultation - fee covered by us

Auto Enrolment

Work place pensions

Check to see if
this affects YOU

Pension
Calculator

How much do you need to put into a pension?

Do some sums!

Decreasing and increasing term assurance

Life cover for a decreasing or increasing sum assured but fixed premium and term

An increasing term assurance policy is life cover for a fixed term, such as 10, 20, 30 years. The sum assured (the amount payable as a result of a successful claim) will increase through the term of the policy but the premium is fixed throughout the term of the policy. The policy is written for the amount the sum assured will grow to by the policy end. The increases are made annually.

An decreasing term assurance policy is life cover for a fixed term, such as 10, 20, 30 years. The sum assured (the amount payable as a result of a successful claim) will decrease through the term of the policy but the premium is fixed throughout the term of the policy. The policy is written for the amount the sum assured will start at at the start of the policy. The decreases are made annually.

The balance of the sum assured becomes payable upon death to the beneficiary.

Many insurance providers allow for a joint policy where the policy will payout on first OR second death (will only pay out once). You decide which death you want it to pay out on at the outset.

There is no surrender value to these policies. If you stop paying the premiums the life protection stops. At the policy termination date the policy terminates without value.

Acceptance of these types of policies are subject to age, lifestyle and health.

Such policies are used for a decreasing liability for a fixed term, such as an repayment only mortgage or for an increasing liability such as inheritance tax.