Life Cover Insurance

What happens if you think you don’t need Life Cover Insurance?

Adequately protected with sufficient Life Insurance?

• The only people that don’t need life cover insurance are the people who are adequately protected.
• You may already have something in place. Perhaps you’ve taken out life cover mortgage protection and it already and it covers the mortgage.

Life Cover Insurance through work benefits

• You may be covered through work so believe you don’t need life cover insurance again.
• Your life cover insurance through work might be adequate but there are two things to think about.

Variable pay?

If you’re using variable pay to get mortgage, a bonus or commission, you’ll find that any work life insurance benefit doesn’t cover bonuses or variable elements in your pay. So, it might not be sufficient to clear the mortgage.

What if you change jobs?

• You can just leave life cover insurance to that point further down the line, but it costs a lot more money then.
• So why don’t you plan for it now and put life cover mortgage protection in place to clear your mortgage?
• Then if you do stay in your role that’s money that can go to your family. It’s a very cost efficient way of clearing the mortgage and then looking after your family, by using work benefits but not relying on them.

You have assets

• It may be that you have assets so feel you don’t really need life cover insurance. However, you probably have plans for those assets, so do you really want to liquidate them to pay off the mortgage?
• If you put life cover mortgage protection in place to pay off the mortgage you don’t have to do that. This means more wealth gets passed through the family and surely that’s a good thing.

Two certainties in life: death and taxes

• There are only two certainties in life death and taxes.
• If you think you don’t need life cover insurance you sort of do, it’s a statistical probability you will.
• Whether it happens in the mortgage term or not, we really hope it doesn’t, but our role is here is to make sure that if it does your family are not adversely affected and you find the best life cover for you.

What type of life insurance cover is appropriate?

Our primary concern is the mortgage, can we clear it?

• Can you pay off the mortgage?
• Can your family survive without you?

The level of life insurance cover will always be related to the mortgage.

We look to match the type of life insurance cover you have with your mortgage.

Types of Life Insurance

There are primarily two types of insurance when it comes to life insurance cover.

Decreasing sum assured

This will then decrease with the mortgage and is typically used for a repayment mortgage.

Level term

Level term is flat through the mortgage term and is typically used for paying off an interest only loan.

Part and Part

If you are doing part-and-part, then you might take out a combination of the two.

Index Cover

You might find that you want Index Cover, so you could offset the cost of inflation further in time.

Write the policy into a Trust

It might be that you want to write the policy into a Trust, so it’s then paid out of your estate.

Please talk to the team so we can talk you through your life insurance options and ensure you get the best life cover for your circumstances.

Our role is always that of the advisor, we’re here to guide you and make recommendations.

Free Will

• We offer all our clients a free Will irrespective of whether you take life cover insurance with us or not.
• If you haven’t experienced it, you’ll probably have heard of a situation where a member of the family dies and the whole family falls out because they fight over what they thought the plans were.
• If we can give you a Will to eradicate that risk in your family that’s the very least we can do.
• We would love to talk to you so please do get in contact.