If you have a mortgage or people who depend on your income, it’s worth asking what would happen to them if you were no longer around.
That’s exactly where life insurance comes in, providing a financial safety net for your loved ones during one of the most difficult times they could face.
For many homeowners in Nottingham, life insurance forms a vital part of their overall protection plan.
It helps ensure that your family wouldn’t be left with the burden of mortgage repayments or other essential costs if the worst were to happen.
As a mortgage broker in Nottingham, we speak to many clients who are unsure whether life insurance is something they really need. Here’s what you should know.
What Does Life Insurance Do?
Life insurance is designed to pay out a lump sum if you pass away during the policy term.
The money can be used for anything, but for most people, it’s there to help cover major financial commitments like a mortgage or family living costs.
When setting up a policy, the amount of cover (known as the sum assured) is typically matched to your mortgage balance or income level.
The aim is to reduce financial pressure on your family and give them time and space to adjust without facing immediate money worries.
How Term Assurance Works With A Mortgage
Term assurance is the most common type of life insurance used to protect a mortgage.
It runs for a fixed number of years, usually aligned with your mortgage term, and pays out if you pass away during that time.
There are different ways to structure this cover.
For repayment mortgages, a decreasing term policy is often used, where the amount of cover reduces as your mortgage balance reduces.
If your priority is leaving a set amount behind, you might look at level term cover instead, which stays fixed throughout.
During your protection review, we’ll talk through the different options and help you decide which type fits your needs best.
What About Family Income Benefit?
Family income benefit works slightly differently.
Instead of paying a lump sum, it provides a monthly payment to your family if you die during the policy term.
It’s designed to replace lost income and help cover everyday living costs, something many families in Nottingham find especially useful.
This type of policy can work well if you have young children or dependants who would rely on your income over a number of years.
It can be taken alongside a standard life insurance policy or as a standalone option.
Joint Life Insurance For Couples
If you’re part of a couple, you may be considering joint life insurance.
This type of policy pays out once, usually on the first death, after which the cover ends.
It can be more cost-effective than taking out two separate policies, but it’s important to understand the limitations.
If each of you has your own individual policy, both would remain in place, which could provide more complete cover depending on your situation.
We’ll explore both routes with you to help make sure the decision reflects your priorities, not just the cost.
Do I Still Need Cover If I Have Death In Service?
Some employers offer a benefit known as death in service, which pays out a lump sum if you pass away while employed.
While this can offer helpful protection, it’s not always a replacement for personal life insurance.
The cover typically ends when you leave your job and may not be enough to cover your mortgage or family needs on its own.
If you’re relying on it, we can help review the details and see whether any gaps need filling.
Our Life Insurance Advice Service In Nottingham
At Nottinghammoneyman, we believe protection should never be overlooked.
We offer a free initial protection review to all our customers, whether you already have cover in place or are just starting to think about it.
We’ll look at your mortgage, your family circumstances, and your monthly budget, then recommend a tailored plan to suit your needs.
If life insurance is right for you, we’ll help you put it in place with the right level of cover.
Our advisors are here to support, not sell. You’ll get honest advice, clear explanations, and a personal approach from start to finish.
Date Last Edited: October 23, 2025
