Life Insurance Flashcards
What are the two main benefits of life Insurance?
Aviva will pay the cover amount if the life covered dies during the policy term.
Aviva will pay the cover amount if the life covered is diagnosed with a terminal illness ( death within 12 months)
What are the two cover types available under life insurance ?
Level cover- cover amount stays the same throughout the term.
Decreasing cover- cover amount decreases every month in line with the repayment mortgage.
List 5 optional benefits under a life insurance policy.
Extra care cover
Fracture cover- cover for 18 specified fractures
Global treatments
Total permanent disability
Upgraded critical illness benefit
Upgraded children’s benefit
WOP
How would a client benefit from life insurance ?
Peace of mind that if policy holder dies within the policy period ( no suicide or self inflicted injury) or passes from a serious illness ( that meets Aviva definition) within 12 months a lump sum will be payable.
This could mean a lump sum for the mortgage to be paid off and a lump sum to pay for a funeral.
This is money the family left behind would struggle to find if unexpected.
