What is life cover?
Life cover is also called ‘term life insurance’ or ‘death cover’. It pays a lump sum amount of money when you die. The money goes to the people you nominate as beneficiaries. Someone who will receive a benefit or asset in the event of the owner’s death.
How does it work?
Life insurance is designed to pay out a lump sum to your family if you tragically die and are unable to continue supporting them financially. Your life insurance policy is designed to cover up to 5 or 10 times your annual salary and provide a financial safety net for your family to pay for things like mortgages, childcare, school fees and ongoing household and utility costs.
The amount is granted when you pass away and is often described as a ‘Death Benefit’. The beneficiaries of your policy are able to use the monies for whatever purpose they choose.
There’s lots of reasons why you might want to think about obtaining a life cover policy. Providing for your loved ones is so important. Could they still afford to do all the everyday things that a family does should the worst happen to you?
You can choose the amount of cover you want and the length of time you need it for, and we will talk you through your options. We will also help you to place the policy in to Trust so the beneficiaries can enjoy the full benefit paid outside of the Estate, free of any Inheritance Tax.
You may be a first time buyer just getting on the property ladder, you may be upsizing for your first large family home, but whatever the mortgage- it should be protected!
We will tailor your protection policy to the term of your mortgage and for the amount that your mortgage is worth. There are 2 types of policies, Decreasing Term & Level Term. These assurances are different as the decreasing term will reduce roughly in line with the mortgage amount during the term as it’s being paid off, whereas a Level Term policy would pay out a set amount to pay off the mortgage and there then may be some money leftover which can be enjoyed however the beneficiary wishes.