Life Insurance
Buying a home and getting on the housing ladder is a fantastic experience, but being a home owner comes with additional responsibilities. A mortgage is a significant financial commitment over many years, so it is important to have a safety net in place should the worst happen.
What is Life Insurance?
Life Insurance pays out a cash lump-sum in the event of your death. That money goes to your wife/husband/partner, and children. This is typically used to repay the mortgage allowing them to remain in the family home, however it is possible to have higher cover to leave additional cash.
How much does Life Insurance cost?
The policy is paid for monthly and so long as you maintain the monthly payments, the policy will remain able to respond to a valid claim. The monthly payment is dependant on how much cover you want and your overall level of health, age and other factors.
You will have a defined cover amount (for example £200,000) and this is the amount your loved ones will receive in the event of a valid claim. When buying a home jointly, its recommend that you take a joint policy or two separate policies with the person you are buying with. You can choose who receives the benefits and it is recommend to put the policy in a Trust.
Life Insurance can be combined with Critical Illness cover in one policy. To find out more, read our page on Critical Illness Insurance
When should I take out a Life Insurance policy?
Most people will take out life insurance when they buy their first home. As well as being your home, your first house is also an asset that is worth protecting for your family. The policy is usually arranged to repay your mortgage, so is often arranged over the same time frame as your mortgage (for example 20 or 25 years). One crucial part of taking life cover is the age at which you start the policy. The younger you are, the cheaper the policy is typically (subject to underwriting and existing health conditions).
The monthly payments can be fixed for the entire period of the policy, so it is beneficial to take out the policy when you are young and in good health.
Example Quote: For a man aged 30 who does not smoke, £100,000 of life cover costs just £6.34 per month*
How we can help
As an independent and whole of market mortgage and insurance broker, First Select Mortgage Brokers we will carry out a comprehensive search of the mortgage and insurance market to find you the lowest cost product that meets your circumstances. We will conduct an affordability assessment with you to ensure the monthly mortgage payments and insurance payments all fit within your monthly budget.
Have more time? We have published a Free Information Guide on Life & Critical Illness Insurance. It is a short 4 minute read and can be accessed: here
Contact us
About us
First Select Mortgage Brokers are friendly and professional mortgage brokers. We can access mortgages from the whole of the UK mortgage market, meaning we can get the best possible deal for our clients circumstances. Based in Manchester, we are a family business with decades of experience in financial services. Our goal is to be the most trusted regional mortgage advisory business in the northwest of England.
Our team of experts are ready and waiting to help. Contact the team below:
Phone: 0161 393 1575 // 07780 446 937
Email: hello@firstselectfs.co.uk
Visit our Contact Us page to make a formal enquiry
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