There’s different types of life insurance; they all aim to offer financial protection for when the policy holder dies and offer slightly different types of cover.
The alternative to a term life policy is a whole of life policy. These pay out whenever you die - and as this will happen at some point, these policies are typically more expensive. It’s also known as life assurance.
Cignpost Life insurance is a term life policy.
The payout and cover stays the same throughout the amount of time you are insured for. Put simply, you decide the amount of cover to take out and that’s what the policy pays. This is often taken out for families, who want to cover for costs such as protecting their families lifestyle or child care costs as well as monthly outgoings such as a mortgage.
Increasing term policies, as the name suggests, this increases the payout the longer the policy runs. The cover amount increases each year by 3% and your premiums increase by 3.75% each year to pay for the increased cover and age. The increasing option helps to provide some degree of protection against the risk of inflation.
This means the cover amount decreases each year to pay off an outstanding mortgage or loan by the end of the term based on an interest rate of 8%. This is because your debt should be decreasing as you repay it over time.
Get a quote
Purchase life insurance anytime in just 5 minutes, using our simple online application - we understand life is busy, so you can get cover instantly online whenever it suits you.
We use a straight forward, short application form and keep jargon to a minimum to help you get cover quickly and simply.
If you’re diagnosed as being terminally ill, we’ll pay the cover amount*.
Choose the cover amount, type and the length of time you’d like to be covered to fit your situation and budget.
*full details in our terms and conditions