Life Insurance is a policy that can be taken out to provide your next of kin with financial support. If you pass away, the policy will pay out and help your loved ones pay off any of your outstanding payments.
There are many different Life Insurance policies available. In most cases, the policy will release in one large lump sum, however, some policies may release in smaller monthly amounts. The idea is to use this money to cover withstanding mortgage payments, pay off loans and bills or even help with childcare costs.
If you are thinking of taking out Life Insurance, we would recommend that you speak with a Protection Advisor in Nottingham. Here at Nottinghammoneyman, we are able to help you select a Life Insurance policy that is best suited to your personal and financial situation. Your dedicated advisor will assess your circumstances and make sure that you are happy with the application process.
If you are worrying about leaving your finances behind, you may need to consider Life Insurance. In the event of your death, your family would be more financially secure with a policy in place.
Life Insurance policies are favoured amongst partners or friends living together so that the second party will not be left with the full mortgage repayments. The reason for this is that if one of you passes away, the other may struggle to make up the repayments with only their sole income.
Upon taking out a Life Insurance policy, you will have to pay monthly premiums. The amount that you pay each month can vary depending on the policy and the terms that you have set out.
When defining the terms of your policy, you can choose conditions such as what the policy pays out for, the length of the policy, how the funds are released and many more. Usually, you won’t have to choose the length of the policy, you will pay your policy until it pays out.
When it comes to the starting prices of Life Insurance policies, typically, the younger and healthier that you are, the cheaper your quote will be. Lifestyle, age, medical history are the main factors that your Protection Specialist in Nottingham will look for.
Life Insurance allows you to create your own policy, you choose the specifics. You can even choose what the money can be spent on upon the release of the policy. You may only want the money to be used on debts, such as a mortgage.
Life Insurance offers financial support to your family members and loved ones if you pass away. Let our amazing team in Nottingham help you choose a policy that suits your health and needs.
Finding the right Life Insurance product for your individual needs can be difficult, especially since there are so many different policies. As a Life Insurance Advisor in Nottingham, we have been able to help many different types of customers find a policy that matches their personal circumstances:
With Level Term Life Insurance, your policy will only pay out within a fixed ‘term’. The most popular term length is between 15-25 years. When you are defining your policy conditions, you can narrow or extend your term in 5-year increments. The lump sum that is paid out will always remain the same no matter the length of your policy. The only way it would not pay out would be if you pass away outside of the fixed term.
Level Term Life Insurance is typically taken out to cover a mortgage. When you take out the policy, you can define the length to run in line with your mortgage term, therefore, if you were to die before paying off your mortgage, Level Term Life Insurance will cover the remaining payments. This also means that the remaining mortgage payments will not fall to family members or any other name attached to the mortgage.
Customers often ask, “why would you want a policy that decreases in value?”; the simple answer is that this policy mirrors the amount remaining on your mortgage. Unlike Level Term Life Insurance where the amount that is paid out remains the same throughout your fixed term, the amount that is paid will be equal to the remaining amount on your mortgage. As the amount owed on your mortgage decreases, so does the sum insured.
When people take out this Life Insurance product, depending on their personal circumstances, they usually take out another Life Insurance policy alongside it. This policy will only be valid for the duration of your mortgage, so, if you were to die outside of this term, nothing would pay out to cover other financial debts, bills in your name.
Increasing Term Life Insurance increases as you get further into your term. It will increase by a fixed amount until your policy term ends.
This life Insurance policy also compensates for the total value against inflation and is usually in line with the retail price index.
The Whole of Life Insurance policy is the most costly policy of these products, as it covers your whole life. When you pass away, the policy will pay out. The only way that a Whole of Life Insurance policy will not pay out is if you fail to keep up to date with your monthly payments.
We’ve seen that customers seem to use it for family protection or part of inheritance tax planning.
This policy covers people in relationships/married. It allows you to combine two Life Insurance policies into one under both names.
Joint Life Insurance policy that will pay out in the event of one party passing away. It’s not unusual for each party to take out their own individual policies, that method is completely fine, however, it can be more cost-effective to take out a Joint Life Insurance policy that covers you both.
The only downside to that policy is that once it pays out, the policy ends, even for the other partner. You can always take out another Life Insurance policy for yourself after the Joint Life Insurance policy has expired if you wanted to.
Death in Service Life Insurance can be offered to you by your employer. Your company is not obliged to provide Death in Service cover, however, some may offer it as part of their employee benefits package.
Death in Service pays out a lump sum to the employee’s family or a person of their choice if they pass away. This sum can be up to 5 times their annual salary. There are no limitations on what can be done with the money that is released from the policy.
The policy payout has nothing to do with if an employee dies in the workplace.
As a Mortgage Broker in Nottingham and Life Insurance Specialist, we’ve seen many sole homeowners disregard the idea of taking out Life Insurance. Most sole homeowners don’t realise that their remaining debt, unpaid bills and mortgage payments will fall to their family if they die without cover.
We suggest that you think about your future circumstances and look to see whether things could change. For more information on how Life Insurance can affect you as a single homeowner, contact us and speak to one of our Mortgage Protection and Insurance Specialist in Nottingham. During your free insurance review, we can find out whether taking out Life Insurance as a single homeowner could be beneficial for you.
Our Mortgage and Protection Advisors in Nottingham want to make sure that you have the correct policy/policies in place so that you are leaving your family in the best position possible if you pass away. Taking Life Insurance in Nottingham will give your family financial certainty and will take a little stress off them in an already difficult time.
We have been working in the industry for 20 years and have learnt about each Life Insurance policy and how they work. Each cover has its own perks and limitations; we can recommend the best policy for you based on your personal circumstances, being transparent and honest at all times.
We value customer service; we want you to have the best experience possible. At Nottinghammoneyman, you will converse with your own dedicated Life Insurance Advisor who will be right by your side throughout the whole journey. Feel free to check out our excellent reviews by heading over to the review page.
If you are looking to take out more than one Life Insurance policy, we can help you with that too! Get in touch with our team and we can talk through all of your Life Insurance options.