Quite simply, Term Assurance pays a lump sum on the death of the person or persons covered. There is no element of savings or investment. Due to this, Term Assurance is usually a cheap way of protecting you and your family!

You decide on the number of years in which you want the cover to run for along with the amount of cover you require! Often, this type of Life Insurance is taken out to protect against a Loan already taken, or about to be taken out in the near future, therefore the amount of Life Cover needed is governed by the amount of the loan!

There a several different types of Term Assurance that can be taken out, but the most widely used are either Level Term or Decreasing Term Assurance.

Level Term assurance, is simply a level sum of cover throughout the term of the contract.- An example of when this is often used is if you want to protect against an Interest Only Mortgage.

Decreasing Term Assurance, are designed to repay a  Capital and Interest  mortgage( Repayment) mortgage) if the borrower dies before the end of the mortgage term. As the amount of your Repayment mortgage gradually reduces throughout the term of your mortgage as you make your monthly repayments, so the amount of the Decreasing Term assurance reduces in line with this.

The other type of Life Insurance available is called Whole Of Life cover. This is usually required if you require a substantial amount of life cover and also comes with an element of investment. This type of cover guarantees the level of life cover, but not for a specified period, unlike Term assurance, but for your lifetime. This type of cover is therefore more expensive than the much more widely used Term assurance. 

The good news now is that Life Insurance is fairly cheap to have, in simple terms the younger you are the cheaper it will be but the other main factors that underwriters will consider are your health at the time the policy is taken out, whether you smoke or not and the term of the policy.

Also, you are able to take out policies just for yourself, or joint policies for say you and your wife, so of course the cost of the insurance will also be reflected on one or two lives being covered.

At Bluewave Finance, we look for the most suitable policies for you, by using our extensive range of Life Companies and always look for the cheapest cover for you. Click apply here> or call freephone 08000 25 50 22, to apply to take out a policy through us.