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Policy Types
Getting Technical
Level Term Life Insurance is designed to provide an amount of lump sum life insurance where the amount that would be paid out on death (or critical illness) stays the same during the policy term.
The premiums are determined at outset and are usually guaranteed for the full term of the policy, provided premiums are paid when due. Reviewable premium plans are available, but are not widely used. The graph below shows how the sum assured remains constant over the policy term.
Level Term Life Insurance has traditionally been used by advisers for family protection needs and/or to cover Interest Only mortgages. In addition Family Income Benefit Life Insurance (described later) is also recommended to meet family protection needs.
NEWS
Critical illness cover could be right for you
30 May 2007 15:44:24
An insurance expert has argued that critical illness cover, rather than life insurance, could be the best option for your family.
A recent report by consumer watchdog Which? said that life insurance or income protection cover could be preferable to critical illness cover, but David Thomson of Best Deal Insurance has called its findings "cynical and hypocritical".
Though Mr Thomson approved of the Which? recommendation that customers read the small print on their policy carefully - around 20 per cent of claims are rejected due to confusion over non-disclosure - he did not agree that critical illness cover was "a luxury product".
"No other policy does what critical illness does. There is no way that critical illness is a luxury and it worries me that comments from such a trusted organisation as Which? could turn people off from buying it, leaving them financially vulnerable at a time when they need it most.
"If our client had just life insurance and income protection as the Which? report suggests that consumers do, then there would be no lump sum payment and no money available for medical treatment. And income protection will pay just half your monthly income."
The Association of British Insurers recently introduced new critical illness cover definitions, with many insurers adding extra cover to their policies to give consumers the best possible protection.
Union dispute for life insurance firm
04 June 2007 17:11:09
The first annual general meeting since life insurance giant Standard Life became a listed company were marred by union protests.
Employees of the firm are aggrieved at the insurer's ending of 80 years as a mutual, with increased friction caused by the allegations that an internal document states that the firm will not recognise the union unless legally required to do so.
The Herald newspaper claims that the internal document labels collective bargaining "a serious distraction to achieving our recently announced company strategy of future growth and effectiveness".
David Fleming, national officer for the staff body, Union Amicus, said: "We prefer to work with companies in a mature way. We think they are being disingenuous about the costs and other issues - that doesn't reflect the relationship with any other company.
He continued: "I find their behaviour extremely naive, it reflects the naivety of the way they have dealt with the workforce."
One protester donned a 'fat cat' suit for the demonstration outside the Standard Life Edinburgh AGM, with employees for the life insurance firm disgruntled that executives seem to be experiencing a greater return from the company's recent flotation.
Swiss Re hoping to block FP merger
13 August 2007 14:46:14
Swiss Re is aiming to block the proposed merger between UK life insurance firms Friends Provident and Resolution, according to the Sunday Express.
The news sees the future of Resolution's life cover business growing increasingly complicated, following interest from Pearl and Prudential.
Pearl increased its stake in Resolution recently, seeming to suggest an imminent bid to rival the Friends Provident offer, while the Mail on Sunday reported that Prudential are seeking to reopen talks with Resolution.
The Sunday Express reports that Swiss Re has appointed Credit Suisse to examine the proposed £8.6 billion agreement between Friends Provident and Resolution.
Jacque Aigrain, chief executive of Swiss Re, refused to comment on the Friends Provident-Resolution merger when questioned by Reuters last week, steering conversation towards other markets.
He told the news agency that Asia was viewed as lucrative ground for future acquisitions and sustained growth.
30 May 2007 15:44:24
An insurance expert has argued that critical illness cover, rather than life insurance, could be the best option for your family.
A recent report by consumer watchdog Which? said that life insurance or income protection cover could be preferable to critical illness cover, but David Thomson of Best Deal Insurance has called its findings "cynical and hypocritical".
Though Mr Thomson approved of the Which? recommendation that customers read the small print on their policy carefully - around 20 per cent of claims are rejected due to confusion over non-disclosure - he did not agree that critical illness cover was "a luxury product".
"No other policy does what critical illness does. There is no way that critical illness is a luxury and it worries me that comments from such a trusted organisation as Which? could turn people off from buying it, leaving them financially vulnerable at a time when they need it most.
"If our client had just life insurance and income protection as the Which? report suggests that consumers do, then there would be no lump sum payment and no money available for medical treatment. And income protection will pay just half your monthly income."
The Association of British Insurers recently introduced new critical illness cover definitions, with many insurers adding extra cover to their policies to give consumers the best possible protection.
04 June 2007 17:11:09
The first annual general meeting since life insurance giant Standard Life became a listed company were marred by union protests.
Employees of the firm are aggrieved at the insurer's ending of 80 years as a mutual, with increased friction caused by the allegations that an internal document states that the firm will not recognise the union unless legally required to do so.
The Herald newspaper claims that the internal document labels collective bargaining "a serious distraction to achieving our recently announced company strategy of future growth and effectiveness".
David Fleming, national officer for the staff body, Union Amicus, said: "We prefer to work with companies in a mature way. We think they are being disingenuous about the costs and other issues - that doesn't reflect the relationship with any other company.
He continued: "I find their behaviour extremely naive, it reflects the naivety of the way they have dealt with the workforce."
One protester donned a 'fat cat' suit for the demonstration outside the Standard Life Edinburgh AGM, with employees for the life insurance firm disgruntled that executives seem to be experiencing a greater return from the company's recent flotation.
13 August 2007 14:46:14
Swiss Re is aiming to block the proposed merger between UK life insurance firms Friends Provident and Resolution, according to the Sunday Express.
The news sees the future of Resolution's life cover business growing increasingly complicated, following interest from Pearl and Prudential.
Pearl increased its stake in Resolution recently, seeming to suggest an imminent bid to rival the Friends Provident offer, while the Mail on Sunday reported that Prudential are seeking to reopen talks with Resolution.
The Sunday Express reports that Swiss Re has appointed Credit Suisse to examine the proposed £8.6 billion agreement between Friends Provident and Resolution.
Jacque Aigrain, chief executive of Swiss Re, refused to comment on the Friends Provident-Resolution merger when questioned by Reuters last week, steering conversation towards other markets.
He told the news agency that Asia was viewed as lucrative ground for future acquisitions and sustained growth.