There are four main types of protection:
This is the most common form of protection. It pays out a Lump sum if you die at any time throughout the term of the policy.
Family Income Assurance
This scheme provides an income for your dependents rather than paying them a lump sum, were you to die during the term of the policy. Please note that the income is only paid for the remaining period of the policy term. Therefore you will need to make additional arrangements to provide an ongoing income after the policy expires.
This type of policy is designed to pay out at the time you die whenever that should be. As long as you maintain the policy there is a guarantee that, on your eventual death, the sum assured (level of Life Assurance cover) will be paid to your Estate. Some policies require premiums to be paid right up until the point of death while others have a maximum period for which premiums are payable. Where this is the case premiums are normally payable up to age 80 or perhaps age 85.
This type of policy plays two distinct rolls. It not only provides Life Assurance protection should you die during the term of the policy, which is normally longer than 10 years, but should you survive to the end of the policy term then you receive a lump sum. This lump sum is known as the maturity value.
As there is an investment element within Endowments, normally slightly higher premiums are required to provide for similar levels of Life Assurance protection than an equivalent Term Assurance or Whole of Life Policy. The premiums for Life Assurance vary according to your personal circumstances such as age and medical history. Also your choice of Life Assurance company can have a impact on the level of premium required.