Term Assurance
This is the simplest form of life assurance and is a protection policy that pays out a lump sum if you die at any time during the term of the policy. No amount will be payable to you at the end of the policy term if you survive. You decide at the outset how many years you want the policy to run. It may be you decide to take out term assurance for a particular period of time, to protect your family while your children are growing up.

Term assurance provides a choice of policy types:

• Level term assurance: You decide at the outset the amount of cover you need and how long you want the policy to run. This amount of cover will then remain level throughout the term of the policy and so too will the premiums. This type of cover is often also used in conjunction with an "interest only" mortgage.
  
• Family income benefit: This type of policy provides a guaranteed income for your dependants instead of a lump sum, if you die during the term of the policy. This income is then payable until the original expiry date of your policy. Your premiums will remain the same throughout the policy.
  
• Decreasing term assurance or mortgage protection assurance: The amount of life assurance decreases over the term of the policy. Your premiums will continue to be paid at the same amount throughout. This kind of policy can be used to pay off any outstanding loans which also decrease over time, such as a repayment mortgage. Alternatively, you can use this type of protection to cover a potential inheritance tax liability.
  
• Increasing term assurance: The amount of life assurance and the premium you pay increase each year, usually this is in line with inflation and ensures a realistic level of protection is maintained for your dependants.
  
• Convertible term assurance: During the term of the policy, you have the option to convert your policy to a Whole Life policy or Endowment plan without the need to give additional medical evidence of your health. This option will be a little more expensive than a standard level term assurance policy and may be a helpful option if your health is likely to deteriorate over time.