Life Insurance and Critical Illness

Protecting people you care about financially is very important whether working alongside them professionally or living alongside them at home, DW Financial Services offers a service that will help you decide the best way to do this by arranging protection specifically to your personal needs and business requirements.


Life insurance is usually taken out in conjunction with a mortgage and in many cases family protection when wanting to protect your family when you’re no longer there to support them financially. Term assurance will pay out a lump sum when death occurs during the set period of the policy known as the ‘Term’. This may help family members to afford existing mortgage loans and remain in the family home. It may enable them to live a lifestyle without financial hardship.

Level Term Assurance

This is when you fixed or set a level sum to be paid out on death during the term of the policy. The sum assured is level throughout the whole term of the policy; premiums can also be fixed throughout the term of the policy so there are no monthly increases as time goes on. If the insured survives the set term the policy will end. Usually taken out in conjunction with an interest only mortgage and you can take out a policy on a single or on joint basis.

Decreasing Term Assurance (DTA)

DTA, otherwise known as a Mortgage Protection Policy is a policy that repays the outstanding balance on a repayment mortgage so as your mortgage decreasing over time a DTA policy keeps in line with that decrease always allowing the correct amount to be covered in the event of the insured’s death. Premiums will always be cheaper than a level term policy but monthly premiums are level even though the amount of cover will be reducing over the set term. Usually taken out in conjunction with a repayment mortgage and you can take out a policy on a single or on joint basis.

Critical Illness Cover (CIC)

A CIC policy gives the policy holder a tax-free lump sum on diagnosis off a list of specified illness with any pre-existing conditions excluded. CIC policies can be setup in conjunction with a life ‘term’ policy and can be used to clear a mortgage loans, but more importunately they pay a lump sum to help you and your family financially get through the recovery of your diagnosed illness.  Some of the illness and conditions covered generally include

  • Heart Attack
  • Stroke
  • Most cancers
  • Kidney failure
  • Multiple sclerosis
  • Rheumatoid arthritis
  • Major organ transplants

Always refer to the Key Facts Illustration and Summary of Cover provided by DW Financial Services and produced by the insurance provider to ensure the policy is the correct one you your requirements and needs.

Different polices will pay out in the event of total and permanent disability but the definition may vary between providers.