Life Insurance Advice in Sheffield

Different Types of Life Insurance in Sheffield

There are lots of different types of Life Insurance policies, as a Mortgage Broker in Sheffield, here are the most popular policies that we see people take out:

Level Term Life Insurance

With Level Term Life Insurance is only covered for a fixed ‘term’, therefore you will need to choose how long you want your policy to last. This policy will only payout if you pass away within your term. Typically, terms run between 5-25 years.

People usually take out Level Term Insurance policy’s that run in line with their mortgage term. If the policy owner passes away during the term, the lump sum can cover the remaining mortgage payments. This means that the remaining payments will not fall to family members or other names attached to the mortgage.

Decreasing Term Life Insurance

For a Life Insurance policy that sounds of no use, it’s our most popular! This policy is targeted at people with repayment mortgages – which is practically every homeowner. Similar to Level Term Life Insurance, it can help pay off your remaining mortgage balance if you were to pass away.

The policy’s value tracks the outstanding balance left on your mortgage. As the amount owed on your mortgage decreases, so does the sum insured. Contact our team for more information on this specialist insurance cover.

Increasing Term Life Insurance

This cover works in a reverse way to the Decreasing Term Life policy. The policy will payout if you pass away during your fixed term.

Increasing Term Life Insurance will increase by a fixed amount until your policy term ends. This means that the amount that you are covered for will keep increasing.

This type of Life Insurance can protect the polices value against inflation rates and is usually in line with the retail price index.

Whole of Life Insurance

Whole of Life Insurance policy doesn’t run alongside your mortgage, end after a set term, it’s exactly what it says, it lasts your whole life. After you pass away, your policy will pay out.

As you can predict, this policy costs more than other Life Insurances policies as it doesn’t expire; you will always receive a pay out. People take it out to protect their family from their debt or for part of inheritance tax planning.

For the Insurance to be valid, you will still have to maintain your Life Insurance payments.

Joint Life Insurance

If you are in a relationship/married, a Joint Life Insurance policy pays out in the event of one of you passing away. You can take out two individual Life Insurance policies if you want to, however, it could be cheaper and more beneficial for both parties to take out one.

The policy will expire upon it paying, however. You will not be able to release another lump sum if you pass away. Usually, the cover is used to pay off a mortgage, therefore, another pay out may not be necessary.

Death in Service

This Life Insurance policy may be offered to you by your place of employment. Employers are not required to offer it, however, some will as part of their employee benefits package.

Death in Service is usually paid out through a lump sum to the employee’s family or the person of their choice. The sum can be as much as five times the employee’s annual salary.

The payout has nothing to do with if an employee dies in the workplace.

Taking out Life Insurance as a Single Homeowner

As an Insurance Specialist in Sheffield, we would recommend that all single homeowners still consider Life Insurance options.

Just because you are living on your own, it doesn’t mean that an Insurance policy won’t benefit you. Unfortunately, if you pass away without a policy in place with remaining mortgage payments, they will all fall to your family members. It can put you at ease knowing that there is a safety belt just in case something happens.

Contact a Mortgage Protection and Insurance Specialist in Sheffield and find out whether taking out Life Insurance as a single homeowner could be beneficial for you and your personal situation.