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Glossary of Terms

We want to make Life Insurance as easy as possible-to understand and achieve. We have created this list incase you see a term you don’t recognise. We provide a free, non-obligation quote service based around our panel of leading UK insurers. We will do our best to get you a great deal.

Woman with child having fun in autumn parkKey Words

Term:  The agreed duration of your policy.

Premium: The payment you pay into your policy either montly or annually.

Sum: The amount of cover your life is insured for.

Level Term: A sum which stays the same throughout your policy.

Decreasing Term: The sum will ‘decrease’ in line with your mortgage or loan. Linked to Mortgage Protection.

Guaranteed Premiums: Your premiums stay the same throughout the policy term unless you index link your policy.

Index linked: Your life insurance policy is protected from inflation. Your premium and cover will increase with the retail price index.

Reviewable Premiums: Premiums that are likely to increase during your policy.

Trust: Putting your life insurance into trust can avoid inheritance tax on your policy. It often pays out quicker when you die.

Critical Illness: Includes some forms of cancer. Provides financial protection should you become ill with one of the agreed illnesses.