Life insurance, built around your family.
Life insurance pays a lump sum or regular income if you die while covered. We work out what the people who depend on you would need- whether that means repaying the mortgage, replacing lost income or simply giving them financial breathing room.
- Cover for the mortgage, family income or both
- Insurers matched to your health and circumstances
- Advice with no separate fee and no obligation
What is life insurance and is it right for me?
Life insurance pays a lump sum or regular income if you die while the policy is in force. It can be used to repay a mortgage, replace lost income or support the people who depend on you.
Many policies also include terminal illness cover. This may pay the benefit early if your diagnosis meets the insurer’s definition, after which the policy will end. The exact definition and conditions vary between providers.
Life insurance may be worth considering if you have:
- Children or other financial dependants
- A partner who relies on your income
- A mortgage that someone else would struggle to repay
- Childcare, education or other costs your family would still face
- Limited savings or workplace benefits to fall back on
It is not a legal requirement when taking a mortgage. If nobody depends on you financially and you already have enough savings or workplace cover, you may need less—or no personal life insurance at all.
Check what you already have.
Your employer may provide death-in-service cover, often based on a multiple of your salary. You may also have other workplace benefits that would support your family.
Check:
- How much would be paid
- Who you have nominated to receive it
- Whether your family would receive a lump sum, an income or both
- What happens if you change jobs or leave the employer
Workplace cover can reduce the amount of personal insurance you need, but it will normally end when your employment ends. Its value may also be insufficient to repay the mortgage and replace your income for long enough.
Should the policy be placed in trust?
Putting a suitable life insurance policy in trust can allow the proceeds to pass to your chosen beneficiaries without waiting for probate. The payout will also usually sit outside your estate for Inheritance Tax purposes.
A trust is not right for every policy or every family, and some decisions can be difficult to change later. We can explain the options and help with the insurer’s standard trust paperwork where appropriate. More complex arrangements may require legal or tax advice.
Which type of life insurance?
- Decreasing term cover. The amount insured reduces during the policy term. It is designed to broadly follow a repayment mortgage and is usually the lowest-cost option when repaying that mortgage is the only objective.
- Level term cover. The amount insured stays the same throughout the term. It can repay the mortgage and leave additional money for your family, although inflation will reduce its real value over time.
- Family Income Benefit. Pays a regular income for the remainder of the policy term rather than one large lump sum. It can be useful when replacing a salary and meeting ongoing family costs are the priorities.
The cheapest policy is not automatically the right one. We calculate the financial gap first, then recommend the type and amount of cover that fits it.
Protect the people who matter most
We’ll help you work out how much cover you might need, how long it should last and what you want it to protect, your mortgage, your family or both. Your first conversation is free, with no pressure to proceed.
Call 01225 258900Questions
Your life insurance questions, answered.
Do I need life insurance if I have a mortgage?
It is not a legal requirement, unlike buildings insurance. But if you have a mortgage and people who depend on your income, a policy means they could stay in the home rather than having to sell it. Most lenders will ask whether you have considered it.
What is death in service and is it enough?
It is life cover provided by your employer, usually a multiple of your salary. It is valuable, but it disappears the day you leave that job, and it is rarely written in trust, so it can be delayed by probate. It often reduces how much extra you need rather than removing the need entirely.
What does writing a policy in trust mean?
It places the policy outside your estate. The money is typically paid out in weeks rather than waiting for probate, and it generally falls outside inheritance tax. It costs nothing to set up and a surprising number of policies are not arranged this way.
Level or decreasing term, which should I take?
Decreasing term tracks a repayment mortgage down and is cheapest if clearing the loan is the only aim. Level term keeps the pay-out the same throughout, which suits you better if you also want to leave something behind.
Ready when you are.
Whether you’re arranging a mortgage or protecting what matters, tell us what you need and we’ll explain your options clearly. Your first conversation is free and there’s no obligation.
