Life Insurance

Protection for you and your family. Life cover can give you the comfort that your loved ones will be provided for financially should you die.

What is life insurance?

Life insurance is designed to pay out a lump sum should the insured person die during the term of the policy.

It is often taken out to ensure there is enough money to at least repay your mortgage.

There are three main types of life policy which can be considered:

• Level term assurance
• Decreasing term assurance
• Family Income Benefit

With a level term assurance plan the benefit remains the same i.e. level, throughout the term of the policy. This means that no matter how long the policy has been in force, the lump sum payout will be the same irrespective of when during the term of the policy, the insured person dies.

This type of cover is normally arranged to pay out at least sufficient to cover the full mortgage amount although it can be taken out for more. This type of life insurance would be recommended as a minimum if you have an interest only mortgage.

Alternatively, you could apply for a decreasing term assurance plan. The amount of cover under this type of plan reduces each year. Providing the initial sum insured and the term are the same as the mortgage and the insured person dies during the term of the policy, it should be sufficient to repay the outstanding mortgage balance.

Family Income Benefit (FIB) provides a tax free regular income which is paid out for the remaining term of the policy if you die. FIB can provide a replacement income and may be index-linked to inflation.
It is there to protect the family from the financial effects of a tragic early death of a breadwinner.

These policies are not savings or investment plans so if you cancel your policy, you will not get your money back. All protection policies have benefits and drawbacks. Drawbacks can include exclusions and limits to the amount of cover. We will discuss these with you before we make a recommendation.

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

Talk to us
As there are various ways life insurance can be arranged, we are happy to discuss your options to identify the best solution for you.