Nobody desires to leave their dependants destitute; so upon taking out a mortgage, you ought to consider at the very least a life insurance to cover your mortgage loan.

In essence, life insurance is designed to pay off your mortgage debt, and support your dependants by replacing some or all of your income should you die during the life of the policy.

The two most common types of life insurance available are:

• Level Term Assurance

  • The level of cover remains the same throughout the policy term.

  • It can be used to protect interest only / investment backed mortgages.

  • It can be used for family protection

This is the simplest form of Life insurance cover; it pays a cash lump sum to meet immediate expenses and to replace future income, should you (or your partner, if included on the policy) die unexpectedly.

• Decreasing Term Assurance

  • The level of cover reduces each year in line with the outstanding amount of your repayment mortgage

  • You only pay for the level of cover you need

  • Premiums works out less in comparison to level term assurance

This is designed to protect the outstanding capital of a repayment mortgage as it reduces over time, by clearing your outstanding mortgage in the event of your death.

• Options

As an option, critical illness cover can be included in your life insurance, offering you and your family financial protection. It is designed to provide a cash lump sum on death or earlier, if you suffer a critical illness or permanent and total disability.

• Family income benefit

This type of insurance is an alternative to life insurance; if you desire to provide your partner or dependants with an income should you die before collecting your pension, family income benefit is a far cheaper alternative to life insurance. Instead of dropping a lump sum in your family's lap, it pays them a tax-free income for a defined period. Buying family income benefit instead of a lump-sum policy could halve your monthly premiums.

Depending on your needs and circumstances, our consultants will source for the provider offering the solution to match your protection requirements.

For a no obligation quotation, contact us now or fill in our enquiry form.