Life insurance, built around your family.
Life insurance pays a lump sum or regular income if you die during the policy term. We’ll help you work out what the people who depend on you may need, whether that means repaying the mortgage, replacing lost income or simply giving your family greater 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
As with all insurance policies, conditions and exclusions will apply.
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. Depending on how the policy and trust are arranged, the payout may also 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 an 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.
Many policies also include terminal illness benefit. This may pay the cover amount early if your diagnosis meets the insurer’s definition and the policy conditions, after which the policy will end. Terminal illness benefit is not the same as critical illness cover, and definitions vary between insurers.
Protect the people who matter most
We’ll help you work out how much cover you may need, how long it should last and what you want it to protect—your mortgage, your family’s income 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?
No. Life insurance is not a legal requirement, although a mortgage lender will normally require suitable buildings insurance. However, if someone depends on your income or would struggle to repay the mortgage without you, life insurance could help them remain in the home and meet their other financial commitments.
What is death in service and is it enough?
Death-in-service cover is provided through some employers and usually pays a multiple of your salary if you die while employed there. It can be valuable, but it is linked to that employment and may end when you leave.
Check the amount provided, who you have nominated and how the benefit would be paid. It may reduce the amount of personal cover you need, but it does not automatically replace it.
What does writing a policy in trust mean?
A trust allows nominated trustees to hold the policy for your chosen beneficiaries. Where suitable, this can allow the proceeds to be paid without waiting for probate and may help keep the payout outside your estate for Inheritance Tax purposes.
The right arrangement depends on your circumstances. An insurer’s standard trust form may not carry a separate charge, but legal or tax advice could involve a cost.
Level or decreasing term, which should I take?
Decreasing term cover is designed to reduce broadly alongside a repayment mortgage. Level term cover keeps the insured amount the same throughout the policy term.
Decreasing cover may be suitable when repaying the mortgage is the main objective. Level cover may be more appropriate if you also want to provide additional money for your family. We’ll help you choose the amount and term based on what you want the policy to achieve.
Should we have a joint policy or two single policies?
A joint policy will normally pay once, after the first insured person dies, and then end. Two single policies can potentially provide two separate payouts and may offer greater flexibility, although they can cost more. We can compare both options based on your needs and budget.
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.
