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Life Insurance Cover
If you're looking for the best Mortgage and Protection Advisor in Chichester and Guildford, you've come to the right place.
What is Life Insurance?
Life insurance is a kind of policy that might help financially support your family if you die. It pays a lump sum to the insured person's beneficiaries if he or she dies while covered by a policy. It's designed to provide you with the reassurance that your dependents will be looked after if you're no longer there to provide. You choose the type of policy you need and the term of coverage.
Consider how long your primary financial responsibilities are likely to last, e.g. paying off a mortgage, bringing up children. The amount of money paid out depends on the level of cover your insure. You may need to think about whether receiving a payout will affect any means-tested benefits your dependents might otherwise be eligible for. You decide how it is paid out and whether it will cover specific payments, such as mortgage or rent.
Do I need Life Insurance?
You can't rely on the government to take care of your family – the money they would get from the state is much lower than you'd probably expect. If you want to provide for your family financially if you die, think about getting life insurance.
If you have any of the following:
> dependants, e.g. school-age children,
> a partner who relies on your income,
> a family living in a house with a mortgage that you pay,
Life insurance should be on your priority list.
Types of Life Insurance Policies
Level cover
If you choose for your cover to stay level, it means that your sum assured is designed to remain the same over the life of your plan. It will only change because of your action, such as making a claim or changing a cover. This type of Life Insurance does not adjust for inflation and is often used to protect an 'INTEREST-ONLY MORTGAGE' or a 'FLEXIBLE MORTGAGE' that allows borrow-back facilities.
Decreasing cover
The amount of cover decreases over the policy term, broadly in line with the remaining mortgage. It means that the amount your insurer pays out will decrease over time. Decreasing Life Insurance Covers are often selected to cover a 'REPAYMENT MORTGAGE'.
Increasing cover
Increasing term life cover increases each year to help protect against inflation's future effects. It means that your chosen Life Insurance Company will pay out more over time. This policy is constructed to assist with changing family requirements as the years go by rather than a mortgage.
Family income cover
This can provide a family with either monthly or yearly income instead of a lump sum payment.
As you can see above, life insurance can be structured in several different types of methods. It might sound overwhelming if you do not know much about life covers. Do not worry. Here the knowledge and advice of DJB Mortgages come up in handy. We will make sure you have the best-suited to your circumstances policy type in place.
We specialise in helping to give your family a financial safety net if anything should happen to you.
Why should you use a Mortgage and Protection Advisor instead of Comparison Websites?
Life insurance comparison websites offer very generic and cheapest policies. Life cover should always meet individual needs, which is where DJB Mortgages can help.
We ensure that our clients get the best advice regarding their state of affairs and correctly set up the policies.
As a Mortgage and Protection Advisor, we offer expert guidance which does not cost you extra money.
We have the expertise you won't find on comparison sites.
Dealing with a Mortgage and Protection Advisor gives you peace of mind that your policies do not overlap, as we can check your existing insurance policies.
We are always happy to answer any questions.
Should I put my Life Insurance Policy in trust?
Sadly, most people with life assurance in the UK do not have their policies written into trust.
Having your policy in a trust ensures that the benefit is paid out precisely according to your wishes. As a policyholder, you select your trustees and beneficiaries. It can potentially avoid the inheritance tax and means the payout would go to the loved ones quicker than going through the estate. It means that your surviving spouse or children can quickly receive much needed financial assistance in the event of your death.
*For insurance business, we offer advice on products from a choice of insurers.
*Some trusts are not regulated by the Financial Advice Authority.
Trust Services Promoted here are not part of the Openwork offering and are offered in our own right. Openwork Limited accepts no responsibility for this aspect of our business.
