Life Insurance
Provisions for death or illness
There are a range of flexible insurances available to provide for ill health and death and in many cases premiums are not expensive. The premiums charged for these types of insurance change frequently as different insurance companies become competitive on costs.
Mayfair Consulting Ltd can provide up-to-date illustrations using our very own comparison software, and can look out for any policy exclusions.
The range of protection contracts is large. Assurance policies are available to repay both your mortgage liability and to meet your family's requirements on either your death, or the diagnosis of a critical illness. Furthermore, you are able to protect your own income in the event of sickness or disability.
Life Insurance
Life insurance pays off your mortgage when you die which means your family won't be left in financial difficulty.
When you buy a home you need to consider how your family would live if you were unable to pay the bills. One partner may find it a struggle to cope on their own, particularly if there are children involved.
Whole life insurance is the most expensive and pays out the full sum insured whenever you die.
Term insurance, which is the cheapest pays out a lump sum if you die within a specified period. If you are still alive at the end of the term, no payment is made.
You can arrange for a policy to match the repayment term on your mortgage, so if you die before the end of the term, the payout will clear your debt.
And you can choose for the level of cover to decrease in line with your mortgage, meaning your monthly premiums will be cheaper.
Couples can take out a joint-life policy that will cover both of them. This can be set to pay out on first death.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
