Term Life Insurance Lowdown

Things You Need to Know About Term Life Insurance

• Term life insurance is a cheaper alternative to whole life and variable life insurance policies.
• Except in the case of a Return of Premium Term Life Insurance, it accumulates no monetary value, i.e., you don’t get back the money you have paid as premiums, at the end of the policy period.
• The policy expires at the end of the nominated period, which can be between one and thirty years. If the policy holder dies within that period, his beneficiaries are paid the insurance in full.
• You will have to undergo a medical check before your premiums are decided. If you are old or suffer from any serious illness, your premiums are likely to be high.
• A few insurers allow you to renew your policy at the end of the term, but the premiums are likely to be higher, a rise that is attributed to the increase in your age.
• Some policies provide policy holders with terminal illnesses accelerated benefits. The premiums on such policies are higher than normal.

Resolution Buys Out Abbey National

Abbey National’s life insurance businesses are being snapped up the UK-based insurance firm Resolution, according to statements issued to the London Stock Exchange. The British bank owned by Spanish contemporary Banco Santander Central Hispano (SCH) is selling its life insurance activities that are valued at £3.6 billion sterling, and include Scottish Mutual Assurance, Scottish Provident Limited and Abbey National Life, as well as two offshore life companies, Scottish Mutual International and Scottish Provident International Life Assurance Limited. RTE reports:

The acquisitions will be funded partly with a £1.54-billion rights issue. Some 2,000 Abbey employees would transfer to Resolution as part of the deal. Meanwhile, Resolution has signed long-term distribution agreements to provide Abbey with Abbey-branded and Scottish Provident-branded life and pensions products.