Part of life is death – we all will die at some point and we all naturally assume it will happen when we are much older. Unfortunately accidents and terminal illnesses mean that life can be cut short at anytime and at any age.
When you are young, free, single, mortgage free without children you could say there is no need for life cover and you are most probably right – but once you start to have financial commitments such as a mortgage with a partner and possibly children, things change. You have to consider the financial effect your death will have upon your loved ones.
What is Life Assurance?
This is a policy that pays out a sum of money upon death of the person(s) covered within the policy’s chosen term.
There are different types of cover that should be considered:
Level Term Assurance
This pays out a fixed sum of money throughout the term of the policy – i.e. £100,000 over a period of 20 years. It may also be possible to add an indexation option to protect against inflation.
This type of policy can be used to protect an interest only mortgage or to provide cover for family protection.
Decreasing Term Assurance
This pays out a lump sum of money throughout the term of the policy. The amount payable will decrease (reduce) on a monthly basis – this type of policy is commonly used to protect a repayment (capital & interest) mortgage or any other reducing debt.
Family Income Benefit
This type of policy pays out a monthly benefit throughout the term of the policy and can be used to replace an income of your partner, husband / wife in the event of death.
All the above policies can be taken on a joint or single life basis.
To discuss which cover would be best suited to your situation please ring Manchester Mortgages on 0161 706 0242 or complete and send the Contact Us form for a personal illustration.
Manchester Mortgages is a trading name of Mortgages 4U (North West ) Limited which is authorised and regulated by the Financial Conduct Authority (FCA register number 301076). Registered in England & Wales No. 4729252. Registered office: 7 Randale Drive, Bury, BL9 8HZ.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.