Do I need life insurance to get a mortgage?

It is not a requirement to have a life insurance plan in place to obtain a mortgage. However, it isn't something you should ignore. Most people will set up a policy to cover their mortgage in the event of their death; doing so will help to ensure that your family can continue paying the mortgage and not be forced to move.

What’s the difference between a policy on a decreasing, level or increasing basis? 

The difference between these three types of policies are: 

• Decreasing: the pay-out will decrease over the length of the policy
• Level: the pay-out is fixed during the policy and will not change
• Increasing: the pay-out will increase each year by a fixed amount over the length of the policy. 
  

How much does life insurance cost?

Probably less than you think! Monthly premiums will vary between providers and will be based on how much cover you want to apply for and your current circumstances including;

• your age
• your health
• your lifestyle
• whether you smoke
• the length of the policy

For example, the younger you are and the less likely you are to die from a medical condition, the cheaper your policy is likely to be.

How do I claim on life and income insurance?

If you have to make a claim on your life, critical illness and/ or income protection, the first thing to do is contact the provider that you have your policy with. You will need to have all the paperwork together to do with your policy. If you are claiming on a life cover policy for someone who has recently passed away, this will include the death certificate which shows the cause of death. 
To make a claim you will need to complete the form they send to you. If you have any questions whilst filling out the form and getting your paperwork together, contact your provider to talk you through the process. The claim will be delayed if the paperwork or forms are not correct.   

How much cover will I need?

That's completely up to you and what exactly you wish to cover. Most of our clients tend to cover their mortgage amount at a minimum, with many choosing to add a sum to go towards maintaining a certain lifestyle.

Will my life insurance pay out if I find myself unable to work?

Generally, no. Life insurance tends to only cover death. You will need to look into income protection if you want protection against being unable to work.