Most people consider taking out insurance at key points during their life such as buying a home, experiencing illness or loss, getting married or having children.
When considering whether you to take out insurance for your home, health, income or even your life, you need to ask yourself how would you cope if something happened, and how your loved ones would cope should the worst happen to you. From a financial standpoint would they be able to continue life as normal?
Arranging suitable insurance will provide you and your loved ones with financial security at a what would be one of the most challenging moments in your life, removing the financial pressure and allowing you to concentrate on hopefully making a full recovery.
Although none of us like to think about the worst happening, at Mortgage Advice Brokerage we believe that most people would like to remove any financial pressure from their loved ones so they can focus on dealing with their loss and getting back up on their feet, especially if there are children to take care of.
The simplest way to remove this pressure is to take out an insurance product.
As independent insurance brokers we are here to answer any questions and provide guidance to ensure that you can make an informed decision when considering the right insurance for your circumstances.
Here is an overview of the different types of insurance available:
Level Term Assurance
Level Term Assurance pays a predetermined lump sum in the event of death during the duration of the policy. Set up for a specific amount at the outset that will remain the same throughout the duration of the policy – hence the name level.
Decreasing Term Assurance
Decreasing Term Assurance is similar to Level Term Assurance, but the benefit gradually decreases over the term of the policy. These policies are designed as cover for a repayment mortgage, or other loans where the amount of capital outstanding also decreases over time. Because the benefit reduces over time, the premiums are kept very low.
Family Income Benefit
Family Income Benefit is the hidden gem of insurance that not many people are aware of. As the name suggests they are most suitable for people who have children.
Instead of paying a lump sum upon death, it will pay a regular monthly tax-free income in the event of death to your dependents up until the end of the term of the policy. We would normally structure it to coincide with your youngest child reaching an age where they should be self-sufficient. Whilst having a mortgage repaid will improve things from a financial perspective, there will still be ongoing costs on a monthly basis with raising a family and running a home. That’s where this type of insurance can be most beneficial.