Do you need life insurance with your mortgage?

Types of life insurance to consider

You can choose the type of life insurance that is most suitable for your family’s needs. The options include:

• Term life insurance – This covers you for a set period, usually to coincide with when your mortgage term ends or when children are likely to enter employment. You can also decide whether you need a level term, which has a consistent payout for the set term, or a decreasing or increasing payout.
• Whole of life insurance – There is no set period for whole of life insurance, your beneficiaries are guaranteed to receive a payout when you die. This is the more expensive option but will usually provide a higher value of financial support to your loved ones.

Other types of insurance cover that you may consider are:

• Critical illness cover – This provides a lump sum if you are diagnosed with a major illness.
• Income protection – If you are unable to work due to injury or illness, income protection provides a monthly payment while you are not able to work.

How much cover do you need?

To calculate how much life insurance cover you require, you should review all the outstanding debt such as your mortgage balance, loans and car finance to work out your total debt.

You should also consider whether children will require financial support while they complete their education. If you want to ensure that your family is able to pay for additional future costs, you can select an insurance cover that will provide a higher value, by paying larger premiums.

Our team of Nottingham-based financial protection advisers at James Leighton can help you to review your insurance options and evaluate the amount of cover you require.Get in touch to discuss our financial protection services in more detail with our experienced advisers.