Independent Financial Advice

Life Insurance

Why life insurance?

Life insurance can provide peace of mind to you and your loved ones, knowing that in the event of your death, your mortgage, and any other loans could be cleared.

Often referred to as Term Assurance, it pays a tax free lump sum in the event of death during a specified period in return for a fixed monthly premium. At the end of the term the policy finishes and there is no maturity value.

The cheapest and simplest life insurance plans to protect your mortgage are Level Term Assurance and Decreasing Term Assurance:

Level term assurance

This is the most basic type of life insurance. In return for relatively low monthly payments, the policy guarantees an agreed amount of life cover (also known as the sum assured) over a fixed term - often the mortgage period.

It is commonly used to cover interest-only mortgages, where the capital owed remains constant throughout the mortgage term. The lump sum is paid out if death occurs before the policy ends. Term assurance has no surrender value after the policy has ended.

Decreasing term assurance
(often called Mortgage Protection)

Instead of the life cover remaining at the same level it reduces over the term of the policy. This type of cover is popular among those taking out repayment mortgages, as the sum assured reduces roughly in line with the amount of capital owed on the mortgage through time.

So if death should occur before the period ends, the policy pays out a proportion of the sum originally assured, which should be enough to pay off the amount of capital still owed to the lender.

Advice on the best products for you

Our professional advisers will help you identify your ‘Protection’ needs, understand the benefits of protection products and will make a sensible recommendation to fully protect your home and your family, ensuring that you are able to stay in your new home no matter what life throws at you.

Our comprehensive research allows us to shop around and that is exactly what we do! Not only will we research the cost of your Critical Illness Cover, we will also consider the features and benefits, and illnesses covered.