2 min read
Life Insurance (sometimes known as Life Assurance) helps provide financial security for people who depend on you, should you die.
Last updated: 28 February 2022
Although money can’t replace a loved one, it can help those left behind to weather the financial storm. For example, it could pay off the mortgage or provide an income to help cover regular household expenditure.
There are different types of Life Insurance – the most appropriate type for you will depend on your circumstances. Life Insurance will pay out either a single lump sum (sum insured) or a regular income when you die.
This is the simplest type of Life Insurance. You choose how long you’re covered for, eg. 20 years (the term), and the policy pays out If you die within the agreed term. You can also take out term cover as a couple, with the policy paying out on the first death only during the term. There are several different types of policy:
-Level: The amount of cover and premiums remain the same
-Increasing (or index-linked): The amount of cover and premiums gradually rise in line with inflation
-Decreasing: The amount of cover gradually reduces. Generally used to protect a repayment mortgage where the amount of the loan outstanding reduces each year.
-Renewable: You can extend the original term of the policy
-Convertible: Lets you convert the policy to Whole of Life Insurance
This is similar as Term Insurance, but instead of paying a lump sum when you die, it will pay out a regular income instead. This type of payment may be more suitable where the main purpose of the policy is to provide ongoing financial support to dependants.
Whole of Life Insurance pays out a lump sum when you die, whenever that is, as long as you are still paying the premiums.
Have an initial look at some mortgage options, you can discuss these with one of our expert advisers who have top industry knowledge to help you navigate the mortgage minefield.Compare
Use our simple mortgage calculator to see how much you could potentially borrow. Remember this is indicative only, speak to an expert adviser for a full calculation, specific to you.Learn more
It is important to consider other costs. Stamp Duty is a tax you might have to pay if you buy a residential property or a piece of land in England and Northern Ireland. Use our calculator to find out how much this may cost.Learn more