Financially protecting yourself and your family is the most important part of planning for your future.
Charles Mac are here to help you!
Mortgage Protection – Life Assurance
This type of life assurance is taken out to protect a repayment mortgage.
A tax-free lump sum is paid out upon death to protect your dependents.
The sum assured (benefit) is set up to mirror your mortgage balance.
Upon death, the benefit can be used to pay off your mortgage.
Level Term Assurance – Life Assurance
This type of life assurance is taken to protect an interest only mortgage or to provide your family with a tax-free lump sum upon death.
The Cost of Life Assurance
The amount you will pay for life assurance depends on your age, health, the amount you need to be protected for, and the term you need to be protected over.
Do you need life assurance?
Think about how your dependents would cope financially if you were no longer around. Could they continue to pay for the mortgage and cover their regular monthly household expenditure without you?
Can you simply rely on your Death-in-Service benefit?
You may wish to use your Death-in-Service benefit to protect your mortgage, but it typically comes as a multiple of your salary. Is this enough?
Death-in-Service is not designed to protect the mortgage so if you change jobs your Death-in-Service benefit may not be as good when you do or may not be a benefit on offer at all.
Please don’t rely on Death-in Service benefit to protect your mortgage because if the benefit is no longer available, and you have had a change of health, we may not be able to secure life assurance for you.
I am the main earner – surely you only need to protect me?
Think about whether you need to cover any child-care costs along the way. Would you give up your job for cover the child-care duties, at which point would you be able to keep up payments on your mortgage and other associated regular monthly expenditure?
Do you need life insurance when applying for a mortgage?
It is considered best advice to protect your mortgage and there are many different types of life assurance on the market that you can use to protect the mortgage.
Please don’t leave your options to chance!
Call today to book an appointment to see one of our experienced mortgage brokers
01233 733900 or 01227 937300