2025-06-18
Reading a life insurance schedule without the jargon
A plain-English walk through sum assured, term length, trust wording and what happens if premiums stop.
A life insurance schedule looks dense, but four lines matter most: the sum assured, the term end date, whether cover is level or decreasing, and who receives the payout.
Sum assured should relate to debts and income replacement — for example, clearing a mortgage and covering several years of household spending. Decreasing term cover often tracks a repayment mortgage; level term stays fixed and suits income replacement better.
Check whether the policy sits in a trust. Without one, proceeds may pass through probate and arrive more slowly. Advisers and solicitors can explain the wording; the schedule itself usually names the trustees.
If premiums stop, cover usually ends after a short grace period. Before cancelling an old policy because a new one feels cheaper, compare remaining term and any exclusions. Replacing cover after a health change can be harder than expected.