What does it cover?
Term life insurance for pilots is a simple form of life assurance policy that pays out a lump sum (the sum assured) in the event of the death of the policyholder, to ensure that your family and dependants will not suffer financially if the worst should happen. Term assurance for pilots is usually available on either a single or joint life basis and some plans also have additional benefits such as paying out on the diagnosis of a terminal illness during the term of the policy. If the policyholder or policyholders are alive at the end of the term the policy expires and no payment is made. If you stop paying premiums, the policy lapses and has no cash-in value at any time.
Level term assurance for pilots is designed to pay out a sum of money if the policyholder should die during the term in which the policy runs. When choosing your policy, you should choose the amount you want paying out (the sum assured) and the length of time for which the policy is to cover (the term).
Decreasing term assurance for pilots (often called 'Mortgage Protection') is where the sum assured decreases over the term of the policy. This is commonly used to protect a repayment mortgage, where the outstanding balance reduces each year.
Other options available are:
- Critical Illness Cover – Often available at an extra cost. The sum assured is payable on the diagnosis of a critical illness, such as some forms of cancer, a heart attack, multiple sclerosis or a stroke. Full details of the conditions covered can be found in the relevant Key Facts document.
- Waiver of Premium - is often available at an extra cost. This will pay your premiums if you are unable to work for health reasons.
- Mortgage Payment Protection – typically pays out for a maximum of 1 year and can be used to cover both interest and capital repayments.
Please note this is only a summary of the cover provided. Full detail of the cover is available in the Key Facts Document which is sent with any quotations we provide you with.