We understand the importance of insuring your home or even insuring your pets, but the most important thing we recommend insuring is yourself to help protect your family in the event of any unfortunate circumstances. Northern Property Finance have years of experience in helping clients protect themselves and their loved ones, and we want to identify how important it is to make sure you have the correct level of cover and the right provisions in place.
With access to a wide range of insurance providers within the market place we are able to offer bespoke life insurance products to suit your needs, ensuring you are covered for the things that really matter and you aren’t paying for cover that isn’t necessary.
Life insurance can be used to cover your mortgage, or simply cover you as individual or your family to ensure that when you pass away your loved ones will receive a pay out to assist with ongoing living costs. If you have family that are financially dependent on you, you can ensure they are covered should anything ever happen. It’s one less thing to worry about and something that should always be considered for future planning.
It’s not all about life insurance in the event that you pass away however, within your life time you may develop a critical illness or have to take time off work due to sickness. Additional benefits are available to cover you in the event of these circumstances e.g. fracture cover in the event you break your leg, our expert advisor is on hand to identify the options available and the benefits of each.
What types of life cover are available?
Life Insurance Cover
Life insurance is a policy that will pay out a lump sum if the insured person passes away or is diagnosed with a terminal illness within the term of the policy. Life protection can be a set level of cover that will pay out in full in the event of a claim know as a Level Term Policy. Should you opt for a Decreasing Term Policy, the level of cover would reduce each month over the term of the policy and only pay out the remaining amount at the time of a claim.
A life insurance policy can be used to cover the following:
- Individual Protection – Protecting yourself in the event that you pass away, ensuring your loved ones receive pay lump sum pay-out.
- Mortgage Protection – Your life insurance policy can be used to protect your mortgage in the event that you pass away. This will help assist your family in repaying your mortgage debt, alleviating any potential financial issues.
- Family Income Benefit – This will ensure your family will receive a regular tax-free income until the end of the term of the policy in the event that you pass away. Compared to life insurance that pays out a lump sum, a family income benefit can ensure a specified stable monthly income.
- Whole of Life Insurance – Designed to cover you for the whole of your life which will pay out in the event of death. This can be used to assist with funeral plans and mitigate any potential inheritance tax. Compared to term life insurance policies, this policy will run for whole of life instead of expiring at a selected time, because of this however the premiums may be higher.
Life Cover with Critical Illness
Life insurance cover with critical illness is a policy that will pay out a lump sum in the event of a claim of a specified critical illness, or in the event of death. The policy will only pay out once, so upon a potential claim of a critical illness an additional claim upon death would not be available.
Critical illness will cover you in the event that you are diagnosed with a specified critical illness or terminal illness that meets the provider’s definition. Many providers cover for an extensive list of critical illnesses and our advisor will be able identify these definitions with you. Should you already have a life insurance policy currently in place, you can apply for Critical Illness as a standalone product to cover you in the future. Common critical illnesses covered include but not limited to:
- Parkinson's disease
- Heart attack
- Third degree burns
- Heart valve replacement or repair
- HIV/AIDS from occupation or accident
- Kidney failure
- Bacterial Meningitis
- Benign brain tumour
- Loss of limbs
- Loss of speech
- Major organ transplant
- Motor Neuron Disease
Level term assurance explained:
Level term assurance is essentially a level amount of cover e.g. £100,000, that pays out in the event of a claim within the selected term. This is generally associated with life insurance policies where the individual wants the full level of cover to pay out to their loved ones in the event of death. This type of policy is more beneficial should the individual want the level of cover to remain the same over the term and not decrease as their mortgage decreases. It can be used for personal protection or a mortgage protection.
Decreasing term assurance explained:
A decreasing term assurance policy can be commonly associated with the repayments of your mortgage, as the benefit of the policy will decrease throughout the term similar to your mortgage decreasing on a repayment basis. Premiums would potentially be lower than that of a level term assurance product due to the decreasing risk of the policy.
Choosing the right sort of policy and product can be difficult but our advisor will help outline all the benefits of each and identify which products best suit your circumstances. Many providers offer additional benefits and we are here to identify the positive and negatives of each to ensure you are paying for cover that will benefit you and your loved ones. We are here to answer any questions you may have and explore all options available.
How much will it cost?
When considering life insurance our advisor will take into account your health and wellbeing, and provide personalised quotes that will give you a good indication of how much your life insurance could cost you on a monthly basis. These quotes will include basic details such as your age and whether you’re a smoker to give an initial indication of monthly premiums. All life insurance policies are subject to a full assessment with the provider and a potential medical examination which could affect your monthly cost. Each policy is assessed on a case by case basis and our advisor is here to answer any questions you may have throughout the process.
We would look to initially quote for a level of insurance that would cover any mortgage debt or liabilities. However you are able to specify any amount of cover that you wish to be paid out in the event of a claim or on death. Whether you’re considering £50,000 worth of cover or £400,000, we can provide quotes for any level of cover to give you a good indication of costs and benefits.
Northern Property Finance specifically tailor life insurance policies to suit you and your family’s needs, to help cover any future events that may occur. Whether you require insurance for the length of your mortgage, throughout your retirement or maybe for just as long as possible, we will recommend the most cost effective and beneficial products to you to ensure you are correctly covered from the start of your policy.
Give us a call today to discuss your options and arrange your life insurance, it’s such an important thing to consider and we’re here to help guide you through the process.