Life Insurance
How would your partner and family be able to survive should you die or be diagnosed with a terminal illness? Would they be able to keep the repayments on the mortgage and other everyday commitments without you and your income? If the answer is no, then you need to be looking into life insurance.
How much will life insurance cost me?
The price of life insurance varies greatly, depending on age, health, cover amount and policy type. We can customise your policy to make it fit your budget if you feel you cannot afford the repayments of the full recommended amount. It’s better to have a reduced level of cover then none at all.
Obviously, if you’re the insured party then most likely, you won’t see the money. Life insurance is more for the benefit of your loved ones, so you don’t leave them struggling financially as well as grieving for your loss. If you are diagnosed with a terminal illness, some policies will pay out if you can show you have less than 12 months to live. Life insurance funds can be used to repay a mortgage, placed into an account to help with outgoings, used as inheritance or to just enjoy life.
At what point can you claim on your life insurance?
Some policies will pay out if you show you have less than 12 months to live but not all deaths are expected so the majority of the time, it will be paid out after the death of the insured party.
Extra life insurance benefits
- Critical Illness Cover – This will pay on diagnosis of a critical illness (subject to meeting the policy definitions).
- Fracture Cover – An add on which usually costs a few more pounds.
- GP Service – Some providers have a service you can use to get second medical opinions, nutritional tips, counselling and legal guidance.
- Terminal Illness Cover
Will my payments on my life insurance policy change?
Depending on what policy type, you can choose whether you have guaranteed premiums or reviewable premiums. Guaranteed premiums would stay at the same amount throughout the term of your policy but do cost a little bit more upfront. The reviewable policies are cheaper initially but can increase as you get older or if you get any health conditions. We would almost always recommend a policy with guaranteed premiums. We will look at your budget and ensure you can afford the policy when you take it out, and you will have the reassurance of knowing nothing will change after the policy starts.
Do I need life insurance if I have a mortgage?
If you have a joint mortgage with your partner or you have dependants, then we will always stress the importance of having a life insurance policy as you have people that rely on you and your income.
What is FIB?
FIB stands for Family Income Benefit. This is a type of life insurance policy that pays out a regular monthly income rather than a lump sum. The recommended term is normally until the youngest dependent is independent but will be discussed with your adviser. Its aim is to replace the lost income of the deceased party. This policy compliments life cover that is in place for the mortgage. The mortgage debt would be repaid in full and the Family Income Benefit, will provide an income to enable the surviving party to keep paying the bills and not face financial difficulties.
Looking for something else?
First Time Buyer Mortgage
This is a big and exciting step for anyone going down the house purchasing route for the first time. This is likely to be one of the biggest financial commitments that you are likely to make and it has to be right for you.
Help to Buy
The Government has introduced “incentive schemes” such as the Help to Buy Equity loan, which is only applicable for new build properties. This is available for first-time buyers and movers.
Protection
It is vital that you protect that investment you will be working hard to maintain in the years ahead. As no one can predict the future, we would recommend that you consider protection that will help secure your investment.