Life insurance is designed to pay out, usually in a lump sum, in the event of death. With regards to your mortgage, the sum assured should be enough to pay off your outstanding balance.
Here is some information about the most popular types:
Whole of life insurance does not have an end date, therefore, providing premiums are being met the policy will pay out. Generally speaking, this type of insurance is used for family protection and also as part of inheritance tax planning.
Term assurance is the most popular type of family insurance used to cover a mortgage.
Our Advisors will recommend the sum assured and term of the policy, usually to run in line with your new mortgage. The providing that all premiums are maintained, the sum assured will be paid out if you were to die during the term.
There are various types of Term Assurance available, such as decreasing and increasing cover. As part of our personal protection review, the most suitable policy for your needs will be recommended.
This is another version of Term Assurance, where instead of the sum assured being paid as a lump sum on death, it’s paid as an agreed monthly payment. This is very good for families looking to insure an income.
A good advisor, will usually recommend a mixture of insurance types tailor made to match your personal and family requirements.
If you are part of a couple, you could consider taking out a single life policy that will pay out in the event of one of you dying.
This can be cheaper than paying the premiums on two separate policies, but bear in mind that joint policies only pay out on the first death, after that the cover ends.
If you had two separate policies, the second policy would remain in force even after a claim had been made on the first.
Many companies offer their employees family a lump sum payment if the staff member dies while they are employed by the firm.
Although this doesn’t mean the death has to be at the workplace or in any way related to the job done.
This cover will most likely end as soon as you leave the company.
It’s very important to us that all of our customers are given an equal opportunity to take insurance our through ourselves. We wouldn’t be doing our job right if we didn’t mention it!
We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability. We’ll then recommend which products, including critical illness and income protection that meet your needs. If required, we’ll then tailor the plan to match your available monthly budget.
Date Last Edited: July 23, 2020