We understand that in many cases your life savings has gone into the purchase of your new home. Keeping that roof over your family’s head is understandably of utmost importance.
Could they still afford to live there should the worst happen to you? Life insurance undoubtedly helps with this. Whilst we cannot replace you, we can replace the income that runs your household. Being a life insurance broker plays an important part of the service we provide.
Life insurance is designed to give you peace of mind that know if you were to pass away your family would be looked after and not left in any financial hardship and risk losing the home you’ve worked so hard to get. It provides a cash lump sum so that the mortgage can be taken care of, so your family doesn’t have to.
Life insurance provides a lump sum or regular income to your family if you pass away during the policy term. While it is not a legal requirement, most mortgage lenders will recommend it as a way of ensuring your loved ones can continue to meet mortgage repayments should the worst happen. It is one of the most straightforward and cost-effective ways to protect the people who depend on you financially.
For families with children or other dependants, life insurance can be particularly valuable. The payout from a life insurance policy can cover an outstanding mortgage balance, household bills, childcare costs and everyday living expenses, providing your family with financial security at an incredibly difficult time.
At Alexander Southwell Mortgage Services, we compare life insurance from a wide panel of providers to find you the right level of cover at a competitive premium. We advise on decreasing life insurance, level term life insurance and family income benefit policies. Our service is completely fee-free with no hidden charges, serving clients in Southampton, Hampshire and across the UK.
Related protection advice:
Many of our clients combine life insurance with other forms of cover for complete peace of mind. Find out more about critical illness cover insurance, income protection insurance and buildings and contents insurance, or visit our main mortgage protection insurance page.
It is not compulsory to have life insurance in place to get a mortgage, but it is highly advisable. A mortgage is most likely the biggest debt you will leave behind and it is possible to get your total mortgage loan covered cheaply by a life insurance policy, here is further information on the policies to consider:
Policy Term
The term of the policy is specified at the outset of the policy starting. In simple terms, it means how long you are protecting yourself for example 1 – 50 years. Often the term is decided by the following points:
Mortgage term: If your sole purpose is to protect the mortgage then usually the life insurance will coincide with your mortgage term. So, however many years you decide to do the mortgage over, the life insurance will coincide with this.
Dependents: Taking the policy to an age whereby the children are financially independent. For example, 18 once they have finished school or 23 after university.
Retirement age: Make sure that your income is protected should the worse happen therefore by taking the policy to retirement age when your income is then your pension.
Whole of life: Is what it says on the tin. Ideal for someone who is looking to make sure they have provisions in place for funeral costs, inheritance or inheritance tax liability .
Deciding which life insurance cover type is suitable for you and your family can seem challenging however we are here to help and guide you into making the right decision. Whether you simply want to protect the mortgage, help to maintain the same standard of living or simply cover funeral costs there are 3 options for you to choose from:
Good to know:Life insurance policies can be written in trust at no cost to you. Placing the policy in trust means the pay-out sits outside your estate and bypasses the probate process, so your family receives the money more quickly. Our advisers can explain how trusts work and set this up as part of your application.
Terminal Illness benefit: Included within the policies is terminal illness benefit. In the awful event that you are given less than 12 months to live you will receive the pay-out whilst you are still alive. This can be used to help you and your family during this extremely difficult time so that you have no financial worries or stress.
Accidental Death Benefit: We give you Accidental Death Benefit while we process your application, giving you some peace of mind that you are covered in case of accidental death.
House purchase cover: This gives you free life cover before your policy starts from when you exchange contracts to when your house purchase is complete
Fracture cover: Fracture cover pays you a lump sum if you suffer one of the specified fractures during any 12-month period. Most insurance companies will pay one successful claim each policy year.
