Directline Life Insurance: Types of Cover

Directline has two types of covers for Life Insurance:

• Fixed Term Life Cover

• Mortgage Life Cover

Fixed Term Life Cover

This is a protection policy that will ensure that a cash lump sum is paid out if death occurs within a specified period of time known as the policy term. The amount of life cover remains fixed throughout the policy term.

Mortgage Life Cover

Unlike the Fixed Term policy, this is a decreasing protection policy where the level of cover reduces each year roughly in line with the outstanding balance on a standard repayment mortgage – hence it is frequently referred to as “mortgage protection”.

Provided the initial sum insured and term are the same as the mortgage at the outset it means that in the event of death the policy should be sufficient to repay the mortgage provided interest rates have not risen above 12% p.a.

General policy information apply to both products

• Minimum age to take out a policy is 18 next birthday

• Maximum age to start a policy is 65 next birthday

• Minimum term is 5 years

• Maximum period of cover is up to age 70 next birthday

• Minimum sum assured
-up to age 40 - £30,000
-over age 40 - £20,000

• Maximum sum assured - £2 million

• The premium is fixed at the outset and remains exactly the same throughout the policy term

• Both pay out in the event of death or on diagnosis of a terminal illness (not to be confused with critical illness), however a terminal illness claim must be notified to us at least 18 months before the end of the policy term

• Both policies can be written in trust if required • Both policies can be taken out on a single life or joint life first death basis • Premium payment is by monthly direct debit only • Once confirmed terms have been offered, this fact can be faxed to your solicitor or lender if a mortgage is involved • There is no surrender value or cash-back at the end of the policy term - it merely expires

Link to previous articles: Direct Line Life Insurance: Overview Direct Line Pet Insurance Claims Process Direct Line Pet Insurance: Summary of cover Direct Line Pet Insurance Travel Insurance: Claims information Direct Line Van Insurance: Legal Protection