- Assignment
- Beneficiary
- Client
- Client-Specific Illustration
- Critical Illness Cover
- Decreasing Term Insurance
- Direct Debit
- Direct Offer
- UKInsurances.com Premium
- Estate
- First Death/Last Death
- Guaranteed/Reviewable Premiums
- Insured
- Joint Life/Joint Policy
- Key Features Document
- Level Term Insurance
- Life Cover/Life Insurance
- Mortgage Protection
- Policy/Plan
- Policyholder
- Premium
- Premium Type
- Secure/Security
- Settlor
- Single Life
- Standard Premium
- Sum Assured/Amount of Cover
- Term
- Term Insurance
- Trusts
- Trustee
- Underwriting/Underwritten
Assignment refers to the situation whereby a policyholder chooses to transfer his or her interest in the policy to an organisation or individual who has a financial involvement that would be affected by his or her death, such as a bank or building society with which he or she has a mortgage. On the death of the policyholder, the payout would go to the organisation or individual named in the assignation (known as the assignee).
Where you have put the insurance policy in trust, the beneficiary will be the individual you select to receive the proceeds of your policy in the event of your death. See also Trusts and Settlor.
To search for a competitive life insurance product, you can use UKInsurances.com 's quote service, free of charge. You will need to enter certain personal details, such as your name, age, sex and whether you smoke or not, and we will use those details to search the websites of a number of insurers.
This is a unique, tailored summary of your insurance cover, building on the quote obtained by our search of the insurers' websites and taking into account the personal details you have entered. You should enter accurate and full details in our quote search, as the client-specific illustration may eventually form the basis of your agreement with the insurer.
With critical illness cover as part of your term life insurance, you will receive a payout if you are diagnosed as suffering from a number of serious illnesses during the term of the policy or in the event of your death.
The policy will pay out the sum assured if you die or are diagnosed with one of a list of illnesses - whichever happens sooner during the term of your policy.
For a full list of the illnesses and definitions of cover, please read the Key Features Document of your policy and plan documents of your chosen insurance company carefully.
The following illnesses are covered by most plans, but please use the list as a guide only:
- Alzheimer's Disease Angioplasty
- Aorta Graft surgery Benign Brain Tumour
- Blindness Cancer
- Coma Coronary Artery By-Pass
- Deafness Heart Attack
- Heart Valve Replacement or Repair HIV/AIDS (under certain circumstances)
- Kidney Failure
- Loss Of Limbs
- Loss of Speech
- Major Organ Transplant
- Motor Neurone Disease
- Multiple Sclerosis
- Paralysis/Paraplegia
- Parkinson's Disease
- Stroke
- Third Degree Burns
- Permanent and Total Disability
All of the insurance companies involved in our site, who offer this option, adhere to the Association of British Insurers (ABI) Critical Illness Statement of Best Practice.
Total and Permanent Disability is usually defined by the insurance companies as the inability to carry out either your own occupation or various specified tasks. The prices shown on UKInsurances.com are based on policies using the definition based on your own occupation, which is the more favourable definition in most circumstances. However, the exact definition is determined by the insurance company when they receive your application form, based on your actual occupation and/or medical history, and it should be explained in detail in the acceptance terms the insurance company sends you.
Term Insurance is a simple, relatively inexpensive form of life insurance, designed to pay out a sum of money should the policyholder die during the term for which the policy runs. At the time of choosing your policy, YOU choose both the amount to be paid out (the sum assured) and the length of time the policy covers (the term).
This is not the same as whole life insurance, which continues indefinitely until your death, as long as you continue to pay the premiums.
There are various types of Term Insurance, some of which are detailed below:
Level Term Insurance - Where the sum assured is guaranteed at outset and remains unchanged throughout the term of the policy.
Decreasing Term Insurance - Where the sum assured decreases over the term of the policy. This is commonly used to protect a repayment mortgage, where the outstanding mortgage balance reduces each year.
Mortgage Protection - where the cover is specifically for a mortgage. Many mortgage protection policies are actually decreasing term policies, but are called 'mortgage protection' policies as it is a more easily recognisable phrase.
Some mortgage protection plans will guarantee to pay off your mortgage, as long as there have been no changes in its size or term since the agreed figure at the time of application.
Others will provide a lump sum that will be sufficient to repay the intended mortgage, as long as interest rates have not exceeded certain levels. These rates can vary from insurer to insurer. Please see your chosen insurer for exact details on the policy.
An arrangement with your bank, in which you agree to the premiums being paid by automatic transfer from your account when they are due. A popular way of ensuring premiums are paid, as it requires no ongoing paperwork once it has been set up. Direct debit also ensures your premiums are up-to-date and your cover is uninterrupted.
However, to cancel the agreement, you may need to inform your bank in writing.
Most insurance companies insist you pay in this manner, as they can be sure they will receive your premiums on time each month.
Insurance policies you can find through our website are offered on a 'direct offer' basis, which means that we can provide general information about products, but not specific customer advice. The products available on this basis may be limited and their suitability to your circumstances cannot be guaranteed.
The Standard Premium shows the monthly cost of a policy before we have rebated any commission payment.
It is our intention to rebate any commission payments that we would have received back into the policy, to make the premium lower for the benefit of our customers.
The UKInsurances.com Premium, therefore, is the result of this rebate and is the premium that you could pay, subject to underwriting and formal acceptance from the insurance company, if you arranged the policy through our site.
In some instances you will notice that there is no difference between the 2 premiums. This is because we either have no influence or arrangement with that provider so that we cannot rebate commission, or that currently their own computer systems are unable to provide us with a quote whereby all the commission is ploughed back into the policy for the benefit of the consumer.
This is the term given to the total financial value of a person's property, possessions and money at the time of his or her death. It can also include securities, business interests and insurance policies.
If you have a joint policy (for example, a policy with your spouse), the proceeds of the life insurance policy will usually be paid out on the death of either policyholder, whichever one dies first. If you wish, you may be able to arrange payment upon the last death.
Guaranteed/Reviewable Premiums
The insurance policies are offered either with guaranteed premiums, where insurance companies guarantee that the premium will remain the same throughout the term of the plan, or reviewable premiums, under which companies have the option to alter the premium amount during the life of the plan.
As a result, some plans may initially seem less expensive but the potential cost over the term of the policy may be greater.
In order to find the best like-for-like comparisons, we have chosen to compare only policies with guaranteed premiums on the website.
The insured is the person covered by the policy. In the event of the death of the insured, the policy is designed to pay out the sum assured. See also Policyholder.
A policy that insures more than one person. For example, one policy may cover both a husband and wife. See also First Death/Last Death.
This outlines the general features of the policy, such as the aims of the policy, your obligations and risk factors. You should read it carefully at the same time as the client-specific illustration. See also Client-Specific Illustration.
Term Insurance is a simple, relatively inexpensive form of life insurance, designed to pay out a sum of money should the policyholder die during the term for which the policy runs. At the time of choosing your policy, YOU choose both the amount to be paid out (the sum assured) and the length of time the policy covers (the term).
This is not the same as whole life insurance, which continues indefinitely until your death, as long as you continue to pay the premiums.
There are various types of Term Insurance, some of which are detailed below:
Level Term Insurance - Where the sum assured is guaranteed at outset and remains unchanged throughout the term of the policy.
Decreasing Term Insurance - Where the sum assured decreases over the term of the policy. This is commonly used to protect a repayment mortgage, where the outstanding mortgage balance reduces each year.
Mortgage Protection - where the cover is specifically for a mortgage. Many mortgage protection policies are actually decreasing term policies, but are called 'mortgage protection' policies as it is a more easily recognisable phrase.
Some mortgage protection plans will guarantee to pay off your mortgage, as
long as there have been no changes in its size or term since the agreed figure
at the time of application.
Others will provide a lump sum that will be sufficient to repay the intended mortgage, as long as interest rates have not exceeded certain levels. These rates can vary from insurer to insurer. Please see your chosen insurer for exact details on the policy.
This insurance covers your life for a fixed or calculated amount in order to protect your financial interests and/or your family in the event of your death.
Term Insurance is a simple, relatively inexpensive form of life insurance, designed to pay out a sum of money should the policyholder die during the term for which the policy runs. At the time of choosing your policy, YOU choose both the amount to be paid out (the sum assured) and the length of time the policy covers (the term).
This is not the same as whole life insurance, which continues indefinitely until your death, as long as you continue to pay the premiums.
There are various types of Term Insurance, some of which are detailed below:
Level Term Insurance - Where the sum assured is guaranteed at outset and remains unchanged throughout the term of the policy.
Decreasing Term Insurance - Where the sum assured decreases over the term of the policy. This is commonly used to protect a repayment mortgage, where the outstanding mortgage balance reduces each year.
Mortgage Protection - where the cover is specifically for a mortgage. Many mortgage protection policies are actually decreasing term policies, but are called 'mortgage protection' policies as it is a more easily recognisable phrase.
Some mortgage protection plans will guarantee to pay off your mortgage, as
long as there have been no changes in its size or term since the agreed figure
at the time of application.
Others will provide a lump sum that will be sufficient to repay the intended mortgage, as long as interest rates have not exceeded certain levels. These rates can vary from insurer to insurer. Please see your chosen insurer for exact details on the policy.
This is the agreement between you and the insurance company that contains all the specific details of your insurance cover. A policy document should provide all these details for you in writing.
The individual or individuals who takes out the insurance policy. Usually - but not always - the policyholder will be the insured person, whose life is covered.
The regular payments required to maintain your insurance cover.
The insurance policies are offered either with guaranteed premiums, where insurance companies guarantee that the premium will remain the same throughout the term of the plan, or reviewable premiums, under which companies have the option to alter the premium amount during the life of the plan.
As a result, some plans may initially seem less expensive but the potential cost over the term of the policy may be greater.
In order to find the best like-for-like comparisons, we have chosen to compare only policies with guaranteed premiums on the website.
Our site is very secure and all personal information you send to it will be encrypted. For details on how information you send to us will be used, see our Privacy Statement.
The settlor is the name given to the person whose money or property it is that will form part of any trust arrangement. In the case of a life insurance policy, the policy holder would be the settlor.
A single life policy is one where the insurance plan is to cover just one person.
The Standard Premium shows the monthly cost of a policy before we have rebated any commission payment.
It is our intention to rebate any commission payments that we would have received back into the policy, to make the premium lower for the benefit of our customers.
The UKInsurances.com Premium, therefore, is the result of this rebate and is the premium that you could pay, subject to underwriting and formal acceptance from the insurance company, if you arranged the policy through our site.
In some instances you will notice that there is no difference between the 2 premiums. This is because we either have no influence or arrangement with that provider so that we cannot rebate commission, or that currently their own computer systems are unable to provide us with a quote whereby all the commission is ploughed back into the policy for the benefit of the consumer.
This is the sum of money the policy will pay out should the policyholder die during the term of the policy. You, as the policyholder, will decide the value of the sum assured when you apply for life insurance.
The term is the length of time the policy is to run - determined by you when you apply for life insurance.
A simple, relatively inexpensive form of life insurance, designed to pay out a sum of money should the policyholder die during the term for which the policy runs. At the time of choosing your policy, YOU choose both the amount to be paid out (the sum assured) and the length of time the policy covers (the term).
This is not the same as whole life insurance, which continues indefinitely until your death, as long as you continue to pay the premiums.
There are various types of Term Insurance, some of which are detailed below:
Level Term Insurance - Where the sum assured is guaranteed at outset and remains unchanged throughout the term of the policy.
Decreasing Term Insurance - Where the sum assured decreases over the term of the policy. This is commonly used to protect a repayment mortgage, where the outstanding mortgage balance reduces each year.
Mortgage Protection - where the cover is specifically for a mortgage. Many mortgage protection policies are actually decreasing term policies, but are called 'mortgage protection' policies as it is a more easily recognisable phrase.
Some mortgage protection plans will guarantee to pay off your mortgage, as
long as there have been no changes in its size or term since the agreed figure
at the time of application.
Others will provide a lump sum that will be sufficient to repay the intended mortgage, as long as interest rates have not exceeded certain levels. These rates can vary from insurer to insurer. Please see your chosen insurer for exact details on the policy.
The following information is a general explanation of trusts and their potential benefits and drawbacks, when associated with term insurance plans. There is normally no cost involved when putting a plan in trust, but you may need to pay a bank or other financial organisation for setting up the trust.
Advantages - Placing a policy in a trust allows the policyholder (known as the settlor where trusts are concerned) to give any payout on a policy to someone else (known as the beneficiary where trusts are concerned). A number of trustees must be appointed, one of which can be the settlor, who are in charge of seeing that the terms of the trust are carried out.
If the plan is in trust, the proceeds are not counted as part of the settlor's estate when he or she dies. This means that the insurance company can pay your chosen beneficiary quickly, bypassing the probate process (where your will is settled), which in itself can take several months. Many people choose to put their policies in trust to ensure that their dependants get the money when they need it.
As the proceeds of the plan are not part of the settlor's estate, they are not subject to inheritance tax under UK law - ensuring that the maximum proceeds of the policy go directly to the intended beneficiary.
Disadvantages - There are some potential disadvantages of creating a trust. The relevance of these to each individual varies according to circumstance.
In essence, once you have created a trust you may not be able to revoke it, although most are now very flexible. However, if you cancelled the insurance plan altogether, any specific trust would cease with it.
If your policy is to be legally assigned (see Assignation) to a mortgage lender, effectively giving them the right to the proceeds in the event of a claim, then you will not be able to place this in trust.
If your total estate, including the value of any insurance plans, is below the inheritance-tax threshold, or if you don't have any specific beneficiaries, you may find creating a trust unnecessary and you can incur costs in setting it up.
With joint life plans, where the payout occurs on the First Death, the survivor automatically owns the proceeds, so no trust is necessary.
This is the individual or institution legally chosen by a policyholder to carry out his wishes in the event of his death, where the policy has been placed in a trust. See also Trusts.
The process an insurer goes through in assessing the risk and profitability of insuring you, based on the information supplied on the application form. When the insurer has completed this process and confirmed that the policy will be granted, the policy has been underwritten.
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