Life Insurance

Life insurance policies pay a lump sum on your death. They make sure that your dependants have the money they need to maintain a decent standard of living and repay your mortgage and loans if you were to die. There are two main types of life insurance:

Level term insurance

You can use this cover to protect you, your family, your mortgage or a business, for a fixed monthly premium throughout the term you have chosen. The amount of life cover you have chosen will be paid out as a lump sum if you die within the term. This would typically be taken out alongside an interest only mortgage.

Decreasing term insurance (Mortgage Protection)

This cover is typically used to protect a repayment mortgage and is usually cheaper than Level Term Assurance. The plan provides a guaranteed sum of money if you die within the term. The amount decreases over the term of the policy roughly in line with your outstanding mortgage debt. Term insurance policies have no 'cash-in' value at the end of the term, or if you choose to cancel the policy early. This means that the cost of this type of cover is lower than whole-of-life policies given the amount of life cover provided.
Guaranteed or Reviewable Premiums:
If you prefer your Life Insurance premiums to remain the same throughout the policy term, you require a quote with "Guaranteed" premiums. By selecting "Reviewable" premiums the initial premium will be less but the cost of your policy will increase each year.

On completion, there MAY be a fee for mortgage advice. The precise amount will depend on your
circumstances but we estimate it to be £195.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.