Life insurance / assurance
We can't predict the future - which makes it all the more important we're prepared for whatever life may throw at us. Life assurance (also known as ‘life insurance’) can be used to cover a mortgage, or other loan, or to support your dependants in the event that the worst happens to you, giving you peace of mind that they'll be financially protected when you're gone.
Severnside Mortgage Solutions Ltd are here to help by giving you the best possible advice when taking out a life assurance / insurance policy!
Severnside Mortgage Solutions Ltd can help with the following types of life insurance:
Level Term Cover
Taking out level term cover can insure you in a straightforward way. You make a monthly payment, which is normally guaranteed, and your dependents / beneficiaries receive a lump sum payout if you (as the policy holder) die whilst your policy is in force.
You decide on the term of the cover, i.e. the number of years you want to arrange cover over, and the amount of cover you require, i.e. the size of the lump sum.
These decisions will affect your monthly premium. Generally, the more cover you require and the longer the term, the higher the monthly premium. Premiums can also be paid annually.
Decreasing Term cover
Decreasing term cover, sometimes referred to as 'mortgage term insurance', is designed to give your dependents / beneficiaries a pay-out that's specifically calculated to help them pay off your repayment mortgage in the event of your death.
Over time, as you make your mortgage repayments, the amount you owe on your mortgage will gradually decrease – so your dependents / beneficiaries shouldn't need as much money to pay off the remaining mortgage. Because of this, the premiums can be lower than those on policies providing level term cover, as above.
Family Income Benefit
A Family Income Benefit protection policy is designed to pay out a regular monthly income, rather than a lump sum, in the event you (as the policy holder) die whilst your policy is in force.
The income continues until the expiry of the policy’s term – benefits cease thereafter. This type of cover is popular with parents wishing to protect their family against the financial implications of their death, to cover the cost of school / university fees and to cover childcare costs.
Please Note:
The plan will have no cash-in value at any time and will cease at the end of the term. If premiums are not maintained, then your cover will lapse.