Family Protection

Level Term Assurance

A term assurance policy provides a fixed amount of life insurance (the sum assured) for a fixed period (the term) in return for a monthly payment. At the beginning of the plan you decide how much cover you need and over how many years you need it.

If you die within the term of the plan the sum assured will be paid out tax free and the plan then ceases. If you survive to the end of the term, the plan ceases and there is no payout. As a result, this is the simplest and most cost effective form of life insurance available in the UK.

The cost of term life insurance varies depending upon your age, gender, your health and smoking status. If you stop paying the monthly premiums for your policy, the cover will cease.

Typical examples of when a Level Term Assurance policy would be used:

  • to cover an interest only mortgage
  • to cover a spouse and / or financial dependants for a specified term
  • for business purposes such as Director Share Protection
A term assurance plan can be set up to cover just one person (single life) or more than one person (joint lives). There are a number of different options that can be built into a term assurance plan.
  • RPI (Retail Price Index) – The Retail Price Index is unique to the UK and it is a statistical measurement of the UK’s inflation. Some life insurance policies are index linked and increase over their term to help combat inflation.
  • Waiver of Premium – This is used to continue the policy in the event of becoming disabled or ill, and unable to work for longer than (usually) six months. The insurance company will pay the premiums for you until you are able to return to work.
  • Terminal Illness – Terminal illness cover means that your life insurance policy will pay out the full amount if you are diagnosed with a terminal illness and your life expectancy is less than 12 months.

About Us

Arc Protect

ARC Protect is a team of approachable and friendly financial advisors with over 100 years of collective experience behind us.


December 2017
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Power House, 20 Haughton Road, Darlington, DL1 1ST
Phone: (0345) 873 3223
For Mobiles: (01748) 889 077


ARC Finance Group Ltd, trading as Arc Protect, is authorised and regulated by the Financial Conduct Authority.

Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: