Life Insurance is a policy that you take out to provide financial support to your next of kin when you pass away. Life Insurance policies will either pay out a lump sum or release money in intervals over a set period. The money is usually used to cover mortgage payments, childcare costs or bills left by the policy owner.
To get the most out of a Life Insurance policy, you should ask to set your own terms and conditions. A Life Insurance Protection Advisor in Sheffield can help you with the specifics and assist you when you’re trying to find a deal that is best suited to your personal and financial situation.
If you are concerned about leaving behind your financial responsibilities and history when you pass away, you should consider Life Insurance to prevent your family from receiving all of it. It can put you at ease knowing that you have a plan in place that will cover any remaining payments that you have yet to pay off.
It all depends on your personal circumstances and the type of policy that you choose. The more complex and specific the policy is, the more you will have to pay. On the other hand, if you are younger and healthy, these costs shouldn’t be too expensive.
Your first Life Insurance quote will consider your lifestyle, age and medical history. In the event of a claim, the cover can either pay out a whole sum insured at once or through regular payments; this is up to the person who originally took out the policy.
Upon taking out the policy, you can also choose what the payout can be used for, for example, you may only want the money to be used to repay debts such as your mortgage.
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:
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.
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.
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 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.
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.
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.
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.
We want to make sure that you have the correct and best policy in place so that if you pass away, your family are in the best position possible. Having a Life Insurance policy in place can give you and your family financial certainty and take some stress away during an already difficult time.
A Life Insurance Advisor in Sheffield will review your personal and financial situation before recommending certain policies. They will be open and honest with you at all times and make sure that you feel comfortable with everything that is going on. If you have any questions about Life Insurance throughout the process, ask your advisor and they will be able to help.
We offer a Free Insurance Review in Sheffield. You can easily book an insurance appointment by getting in touch with our team. Book an appointment online, over the phone, or drop us an email.