Life Cover

Around 650,000 people in the UK die each year, which includes about 95,500, who are aged just 20-64. this equates to around 260 deaths a day!*

If you have people who are financially dependent on you, then you really should consider having an element of Life Insurance in place.

The tax-free payout on Life Cover (if the claim is successful) is often in place to ensure that the mortgage can be paid off. Ideally, you may want to exceed that amount to provide additional funds for those left behind, enabling them to get through a difficult emotional and financial period, as painlessly as possible.

Also, it is not just homeowners that should consider taking out a life plan; the benefits would be equally applicable to those who are renting.

Of course, you will need to balance any ‘personal’ life cover with any ‘death in service’ benefit that may be in place through your employer.

what about costs…

Whatever you opt for you may be pleasantly surprised at how little it may hit your pocket. So, don’t delay considering life cover due to worries about the cost or, perhaps, your perceived invincibility! Part of the issue is that the monthly premium cost will generally rise, the older you get, which could be a dangerous false economy if, for example, your policy ended at 66. The 30 year-old you, might, strangely enough, end up paying a similar total amount of premiums by 66, as your older 50 year-old self (who takes out a plan at 50). With the latter missing out on the reassurance of 20 years of potential cover.

different types of cover

The options on offer are numerous, such as: Joint, or Individual plans
• both have their merits, and it really depends on what your particular circumstances are, before we can identify the best route.

level term

You choose the amount you want to be insured for, and the period for which you require cover.

decreasing term

The actual amount paid out on a successful claim reduces over time. This may be relevant if you have a repayment mortgage, where it could reflect the reducing loan amount owed. Or perhaps a different kind of life insurance may be better for you, such as:

Limited period plans – this could encompass policies such as Family Income Benefit, which is a short-term plan that provides cover when you have young children – and since it would generally end when the parents are still fairly young, the premiums should be lower to reflect that.

claims payouts

97.5% of all claims were paid out in 2022, equating almost £19m a day!

life cover

99.4% of all claims were paid out. Average payout of £73,578 (term), £4,054 (whole of life).

critical illness

91.6% of all claims were paid out. Average payout of £66,296.

income protection

84.4% of all claims were paid out. Average payout of £21,913.*

For all term assurance plans, should you not die within the policy period, then it doesn’t pay out, and the premiums you’ve paid are not returned to you.

We can assess your particular needs and identify a suitable route forward.

As with all insurance policies, terms, conditions and exclusions will apply.

Don't miss a single thing...

Sign up to the Mortgage Brain news alerts and never miss a news story.  We will keep you updated every time we post a new article.
Subjects

What our customers have to say...

Find a first time buyer mortgage deal

Get the right advice with one of our expert advisers...

Connect with one of our expert advisers.  Click below to book a 30 minute, no obligation, appointment.

Book appointment