Life Insurance &
Mortgage Protection

Life Insurance, also referred to as Life Cover or Life Assurance is an insurance policy that helps support your family financially when the inevitable happens. If you was to die when you’re covered by a life insurance policy, then a cash sum could be released to your loved ones giving you a piece of mind knowing that they’ll be looked after financially.

When taking out a life insurance policy you will want to consider why you’re taking one out, and how it can benefit you and your loved ones.

A life insurance policy will generally pay out a lump sum, this can be used to provide for your loved ones when they can no longer rely on your income.

Having a life insurance policy could save the people who you live with from additional stress of a mortgage once you’re gone, the lump sum from the life insurance policy could pay off the mortgage.

The costs of funerals are going up, by taking out a life insurance policy the lump sum payment could be used to pay for your funeral, meaning your loved ones won’t need to worry about the costs.

A life insurance policy is unique to an individual, not everyone has the same needs. There are different types of life insurances to suit everyone’s needs, these are:

A level-term life insurance policy covers you for a fixed term and fixed lump sum, meaning if you was to pass away within the agreed term then a fixed lump sum would be paid out. This type of policy would be beneficial for family protection, where you may want to leave a lump sum for them.

A decreasing-term life insurance policy covers you for a fixed term, but the lump sum pay-out will gradually decrease over the term of the policy. This type of policy would be beneficial to cover a debt that reduces over time, such as a repayment mortgage.

Non-medial Insurance also known as whole-of-life cover. This is the most expensive type of life insurance because you don’t need to undergo a medical and you’re guaranteed a pay-out as you’re guaranteed to die eventually.

Critical illness cover will cover you if you are diagnosed with a critical illness at any point during the policy, you will be paid out a tax-free lump sum. The type of illnesses covered will be subject to the policy provider, so it would be advised to contact to see a list of the illnesses covered.

No one can tell you how much you should be covered for, this question can only be answered by yourself.

What you will need to consider is if you want higher cover you’ll pay a higher premium, so you will need to look into why you need it and how much for.

Best advice for you to figure all this out is to do the maths, how much of the mortgage do you need paying? How much will your family need if you was to pass away? How much would the funeral cost? Etc.