life assurance Devon
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life assurance Devon

Convertible Term

Life assurance which pays out if you die within the period of protection, but gives you the option to convert to an endowment or whole-of-life policy.   <back>

Endowment

An endowment policy combines savings and life assurance cover. The investment element is not guaranteed but the life assurance will pay you a fixed amount if you die during the term of the policy.   <back>

Family Income Benefit

Life assurance that pays out a regular income rather than a lump sum, if you die within the term. The income is paid until the term expires.   <back>

Life Assurance

An assurance policy that pays a sum of money if you die during the term of the policy and may also include a savings element.   <back>

Level Term Assurance

The simplest form of life assurance, it pays out if you die during the term of protection.   <back>

Maturity

The word used to describe the date, other than when a claim is made, on which a contract taken out for a specific length of time becomes payable by the product provider.   <back>

Premium

The amount paid by the policyholder for life assurance.   <back>

Renewable Term Assurance

Life assurance which pays out if you die within the period of protection, but which gives you the option to renew the cover at the end of the term.   <back>

Sum Assured

The amount the policy will pay out in the event of death before the end of the policy term.   <back>

Surrender

Where you cancel an investment policy including a life assurance policy with an investment or savings element. You may receive a payout, which can be less than paid in, due to the impact of charges. In some cases there will be no surrender value at all.   <back>

Terminal Illness Benefit

Can be added to some policies to effectively accelerate the payment of a death benefit were you to be diagnosed as having a terminal illness.   <back>

Term

Length of time during which the life assurance policy will pay out in the event of you dying. When the term has expired you are no longer insured and there would be no payment were you to die.   <back>

Unit Linked

Your contributions buy units in the selected fund. The value of the units depends on the underlying assets in the fund. Consequently the value of your fund can go down or up. There is a wide range of funds to choose from: some are relatively low risk and others can be very speculative.   <back>

Unit Linked Endowment

A fixed term savings plan with a level of life cover. Your savings go into an underlying fund of investments and the eventual return you get depends on the performance of these investments.   <back>

Whole-of-Life Policy

As the name suggests, can provide life cover without imposing a limited term. The level of life cover chosen will be paid out on death of the life assured whenever it occurs, as long as the policy is in force at the time of death.   <back>

With Profit

At the end of each year the company declares the reversionary bonuses (also known as 'regular' or 'annual'). These bonuses are added to the value of the fund and once added, cannot be taken away - although the product provider will usually reserve the right to apply a 'Market Value Adjuster'. Reversionary bonuses are guaranteed to be paid in full on the contractual maturity date. A Market Value Adjuster (also known as 'Market Level Adjuster' or 'Market Value Reduction') is a type of penalty applied on early encashment. It is usually applied when the stock market is falling or fluctuating rapidly. The idea is to ensure the surrender value received is not unrealistic when compared with the underlying assets of the fund. A further bonus may be paid on the contractual maturity date or on a death claim. This is called the 'terminal' or 'final' bonus. Further information on with profits policies can be found here.  <back>
Hedgelands Financial Services, Hedgelands, Abbotskerswell, Newton Abbot, TQ12 5PW
Registered in England No. 4694508.  Registered Office 32 Monk Street, Abergavenny, Monmouthshire, NP7 5NW
Hedgelands Financial Services Ltd is authorised and regulated by the Financial Conduct Authority, FCA Registration Number 624282. Sitemap
Hedgelands Financial Services
Hedgelands
Abbotskerswell
Newton Abbot
Devon   TQ12 5PW

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Telephone:

01626 360654

General Insurance:

01626 438184

Independent Financial Adviser
life assurance Devon
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