What is life assurance?
If you've ever wondered how your family would cope if the main wage earner passed away then the answer is likely to be life assurance.
Life assurance – in return for paying premiums, the insurance company will pay out the agreed lump sum – known as the 'sum assured' – if the ‘life assured’, the person covered by the plan, dies during the term of the policy. Plans can cover a single person or two people, such as a husband and wife.
Premiums are normally paid to the life insurance company on either a monthly or annual basis for a fixed period of time or in some cases, until death eventually occurs. The cost of these plans varies according to your personal circumstances such as the number of people covered, their age, previous medical history and the amount and length of cover required.
Why should I get life assurance?
When you are planning for the future, life assurance can provide the reassurance of financial protection for you and your family. After all, it is only sensible to consider how best to provide for them financially should anything happen to you. The money provided can be used to pay off a mortgage or any outstanding debts,or support your dependants financially by providing them with a lump sum or a regular income if you die.
It can also be placed in a trust for the beneficiaries of your estate to pay any Inheritance Tax that may be due on your death.
If you own a business, life assurance can provide a lump sum to help it through the tough times if you, or one of your key employees, were to die. Or, if you are partner or shareholder in a business, it can provide the money needed to buy the share of the deceased partner or shareholder.
What’s the difference between life assurance and life insurance?
The correct name for this type of protection plan is life 'assurance' because death is at some point inevitable – so you are 'assured' that the plan will definitely pay out one day, as long as you have paid all the premiums and you die whilst the plan is in force.
Why choose Skandia?
With flexible cover and comprehensive benefits, Skandia Protect can give you peace of mind and financial protection. Rest safe in the knowledge that you and your family will be financially secure, whatever the future may hold for you.
Skandia Protect is a flexible life cover plan. It can include one or more policies, each with a different term and benefits, so you can tailor the policies to create the perfect fit. Three terms are available; fixed, rolling and whole of life. All three offer:
- Optional premium protection benefit, which pays the premiums if you are unable to work due to illness or injury.
- Options to increase the cover after certain events in your life such as marriage, moving house or having a child.
- The option to increase your cover each year to keep pace with inflation.
We offer fixed terms of 5 to 50 years with premiums guaranteed for the duration of the term.
This unique product gives guaranteed insurance for life with premiums guaranteed for ten years at a time. At the end of each ten-year term you can renew the cover for a further ten years without any further medical questions. The new premium will be based on your age at that time and may therefore increase significantly.
Guaranteed whole life
Skandia Protect guaranteed whole life cover policy offers guaranteed premiums for life (or until you increase the sum assured). There are no premium reviews, so no unpleasant surprises for you in the future.
You can read more about Skandia Protect in the key features document and guide or speak to a financial adviser who will be able to discuss your options and recommend products to suit your needs.