This cover may pay out if death occurs and a valid claim is accepted under the policy terms and exclusions and provides an income per year for the term remaining on the policy. For example, for a 20-year term, where the claim occurred after five years, there would be 15 annual payments made in total. Payments can be paid out either monthly or annually.
The payments are not normally subject to income tax but may impact some state benefits.
Tax treatment varies according to individual circumstances and is subject to change.
The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.