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This type of policy can literally run for the whole of a person’s lifetime. Not knowing when death may occur, this is often set up to cover an anticipated debt such as Inheritance Tax rather than a known debt such as a mortgage which has a set time frame. The sum assured and monthly premium are typically set and guaranteed for the first 10 years before being subject to review. Based on the Life Company’s overall claims experience, the benefit may be reduced for the same premium or the premium may have to be increased to provide the same level of benefit. However, an insured person’s possible deteriorating health will have no bearing on such changes. When not covering lifetime debts or replacing income, it is likely for joint life policies to pay out on the second death of the lives assured.
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