Life cover & Level Term Assurance confusion

di3004

Hi folks

This is not for myself but a friend.

Been looking through her policy, and trying to find out what both herself and her hubby are paying for.

With mine and my hubby's we have Critical cover which then includes terminal illness. (part of the level term assurance).
As I understand you cannot purchase a stand alone terminal cover, and it's generally sold/included within another life cover.
"Please correct me if I am mistaken" thank you.

I am not that knowledgable in this field, which is why I'm obviously asking on here on her behalf lol.

On her Summary & recommendation (S&R), they declined critical cover due to affordability, it was also discussed about Waiver of Premium, but they were not eligible due to the policy term and age at policy expiry.

I cannot see any information about terminal illness, but take it that this product is not a stand alone product this must come in with the life cover.

With it being level term assurance, does that still mean this is life cover or not please?

What I do know is that this cover was to pay out for her children written in trust, and the cover ends when a certain age is reached.

Thank you in advance.

InsideInsurance

It is still life cover where it terminates on a set date and no matter when the insured dies they will be paid the sum initially agreed (ie it doesnt increase with inflation but neither decreases either)

Terminal illness cover/ terms are independent from critical illness and a life policy may include it as standard, as an optional extra or not offer it at all.

di3004

InsideInsurance wrote: »

It is still life cover where it terminates on a set date and no matter when the insured dies they will be paid the sum initially agreed (ie it doesnt increase with inflation but neither decreases either)

Terminal illness cover/ terms are independent from critical illness and a life policy may include it as standard, as an optional extra or not offer it at all.

Thank you,
That makes sense, because looking through I could not see any mention of terminal illness, so then it comes into the policy as a life cover, (as you explained). I shall let her know.

Thanks again.;)