Life assurance offers valuable financial protection and peace of mind in the event of death, especially where you have a family dependant on you and/or your income. This could provide a lump sum or an income payable on death, over a specific term of years e.g. the term of your mortgage. Benefits payable could form part of your estate, if not written in trust and could be liable for inheritance tax, if the value of your estate is above a certain threshold. All policies will be subject to satisfactory medical underwriting. Life cover can be on a decreasing term basis, designed for protecting repayment mortgages which means the sum assured decreases in line with the reducing balance of the mortgage, over the mortgage term.
It is possible to have life insurance premiums on fixed monthly payments. This means for the term of the policy the payments will not change even if your health does.
Critical Illness Cover
Critical illness cover pays a tax free lump-sum benefit upon diagnosis of a critical illness or a critical condition. This can include heart attack, stroke, cancer and many more. A critical illness insurance pay out helps you avoid the financial strain a major illness can create, so you can focus on your recovery. The policy will also pay out if a policyholder becomes permanently disabled as a result of injury or illness.
The policies can be either on a decreasing or level term basis depending on the type of mortgage you have. We can talk you through all your options.
Level Term Assurance
Provides a guaranteed lump sum paid on the death of the life/lives assured, throughout the term of the policy. Premiums are level for the duration of the plan. This could provide an amount equal to that of a mortgage loan outstanding, e.g. interest only, a non-mortgage debt or liability.
This policy is designed so that the amount of benefit payable would be sufficient to repay the amount of mortgage outstanding, throughout the mortgage term i.e. a capital and interest repayment mortgage. If you die during the policy term your insurer will pay the calculated amount of cover at that time.
Income Protection can make your life easier if cannot work due to sickness or injury. If you fell ill would you be able to survive on statutory sick pay? Could you afford to live of your savings?
The amount of income protection cover you need will be determined by your salary. Whether you are self employed or employed this type of insurance can be tailored to suit your individual needs.
Buildings and Contents Cover
If you have a mortgage, your lender will insist that your property (and their security) is protected by buildings insurance. It usually pays out if your property is destroyed by fire, floods or subsidence.
Contents Insurance covers the loss or damage of the contents of your home. Different policies offer different levels of cover.