What is Life Cover?

If you take out life cover with an insurance company you make regular payments, called ‘premiums’, to the company and in return the company promises to pay out a sum of money when you die.

 

Why take out life cover?

People take out life cover because they want to leave a cash sum for their loved ones when they die.

• For example, older people might be thinking of leaving a bit of money as a gift for loved ones to remember them by, or to help towards funeral costs.
• Younger people might want a bigger amount of life cover while their children are growing up, so that if the parent should die unexpectedly there will be a substantial payout of money to help provide for the family left behind.

 

Types of life cover

There are two basic types of life cover – ‘Whole of Life’ and ‘Fixed Term’.

• Whole of Life – if you take out a Whole of Life insurance plan, the cover will last for the rest of your life.  So if you want cover that will pay out on your death whenever that comes, then Whole of Life cover might be right for you.
• Fixed Term – if you take out a Fixed Term life insurance plan, the cover will last only for a specified number of years, called the ‘term’.  So for example, you might choose a term that will run until your children are grown up.  Because the cover stops at the end of the term, the cover will be much bigger than with a Whole of Life plan, for any given premium.

 

What do we offer?

Sun Life Direct offers two life insurance plans:

• Whole of Life:    Guaranteed Over 50 Plan, for people aged 50-85
• Fixed Term:       Sun Life Insurance, for people aged 18-59

 

How do I choose between the different plans on offer?

First of all, think about what the money paid out will be used for.  This will help you to decide whether Whole of Life or Fixed Term is the type of plan you need.

• For example, if you want the money to go towards funeral costs, a Whole of Life plan might be best, as it will pay out whenever you die.
• If you want the money to help provide for your family if you die unexpectedly while the children are still young, then Fixed Term might be best, as you can choose cover that lasts only for as long as you need it.

Also, our plans are available to different age ranges, so your age will affect which plans you are eligible for.

 

Find out more

Each plan has different features, so please read the full plan information to decide whether one of them could be right for you.