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Standard Life Insurance
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Standard life insurance services offer several insurance products including the life insurance products. A life insurance plan is a contract between the insurance company and the applicant which states that the sum assured would be paid in case of the death of the insured during the term of the policy.
Some of the Standard life insurance are 1. Level protection plan: This life insurance policy would pay the sum assured in cases of the death of the individual, diagnosis of a terminal illness in which the insured is not likely to live more than 12 months, diagnosis of a critical illness which is covered in the policy as an additional coverage or in cases where the insured suffers a permanent disability which is an optional coverage of the policy. 2. Mortgage protection plan : In this plan, the coverage of the insureds life is same as the level protection plan but the sum assured of the policy decreases over time in the policy. Every year, a fixed amount which is decided when the policy is purchased, is reduced from the sum assured. This is ideal policy coverage if you have a very huge mortgage to be paid off. In case of death, the amount may be sufficient to pay off the mortgage. And as the time goes by, the amount to be paid back in the mortgage also decreases, so there is lesser need of an increased sum assured in the policy. Though the policy is termed as Mortgage protection plan, it is not necessary that the amount from the policy is used to pay off the mortgage only. 3. Life insurance with tax relief: This is life insurance with coverage of serious illnesses and life along with a tax relief on the payments you make. Since by saving tax you are saving money, this type of life insurance becomes even more affordable. There are two types of plans available in this bracket also. One is a level insurance plan, in which the premium and the sum assured remains level all through the term of the policy. The other plan is a decreasing plan which is similar to the mortgage insurance plan in which the sum assured decreases over time. Level protection plan vs. mortgage protection plan: In level protection plan, the sum assured is fixed when the policy is purchased and it remains the same all through the period of the policy. So, in case of death or terminal illness or a critical illness which is covered under the policy any time during the term, the amount is paid completely to the beneficiary. .
In mortgage protection plan, the sum assured decreases over the term of the policy, so if death or illness occurs in the earlier years of the policy, the maximum amount is paid and as the years go by, the amount which is paid decreases. The term of the policy could be anywhere between three to 35 years which is the same for both the plans. With both the insurance plans, you can have coverage for your partner as well. The plans exist only during the time when regular premiums are paid, once you stop paying the premium for any reason, the plan ends. There are no cash values to both the level protection and mortgage protection policies at any time. The sum assured is paid only in case of death or illness during the policy period. Both level protection plan and mortgage protection plan can be used to cover any other individual also in case the death of the other individual would result in a financial crunch for you. There is free accidental death benefit coverage for the policy which is a period of 30 days usually. This is the time taken to underwrite the policy and decide whether the policy is granted or rejected. During this time, in case death occurs a minimum amount is paid by the company. Age limits for the plans: All the plans can be purchased if the individual is of or above 16 years of age in Scotland and 18 in England, Wales and Northern Ireland. The maximum age for purchasing the plans is 79 years for life insurance only plans and 59 for added critical illness cover. The term of the plans would be the anniversary year when you turn 85 in life insurance only plans and 65 years for plans with added critical illness cover. Critical illness cover: In all the plans where critical illness is covered under the policy, the plan ends when the one claim for critical illness is paid. Also the illnesses which are covered as critical illness are defined in the policy which should be cleared before the policy is purchased. Critical illness is different from terminal illness. Terminal illness is the illness in which you are not expected to survive for more than 12 months after the diagnosis. Waiver of premium: The waiver of premium works when you are seriously ill or disabled that you are unable to work. The premiums are paid once the individual is unable for 6months and till the end of the policy or the benefit expiry date whichever is the earliest. Once the individual goes back to work, the benefit ends. This is available on all the life insurance plans. Payment of premium: Before purchasing the policy, the type of the plan, the amount of insurance, the term of the policy, age and sex of the individual, lifestyle and occupation and whether the plan is a single or joint life insurance are considered when the premium to be paid is calculated. And this is calculated separately for every individual. The mode of payment of premium can be monthly, yearly, or a single payment based on your choice. Before purchasing any plan: Before purchasing the plan, you have to choose the plan, the term and benefits you want of the plan. Also it has to be decided whether the benefit has to be paid as a lump sum or over a period of time. The additional cover that you need also needs to be chosen before the purchase of the plan. The additional cover that is available are critical illness benefit, total permanent disability benefit, full accidental death benefit, waiver of premium, and extension option. Terminal illness cover, free accidental death benefit and free Standard life insurance cover are provided along with the plans itself. Any time, you wish to have information regarding the plans and other details of the plans, you can get the information from the website of the company or the information is available when you call the company.
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