Life Cover

There are two types of life cover; decreasing term and level term. Decreasing term is often called 'mortgage protection' and is designed to repay your mortgage in full if you should die. It is the cheapest form of life cover, with the amount of cover decreasing in line with your mortgage balance. It is only suitable protection for a mortgage which is set up on a repayment basis. It is not suitable cover for an interest only mortgage. The policy end date will be set up to coincide with the end of your mortgage.

With a level term policy the amount of cover remains the same throughout the term of a policy. This is the most suitable type of cover to protect an interest only mortgage. It is also suitable to have if you want cover for things other than your mortgage. For example, if you have children you may want to consider having level term assurance so in the event of your death they will not struggle financially. The life cover policy can also be set up in trust. Please contact us for further details about this.

Life cover can be set up on a single life or joint life basis. On a joint life basis the policy will pay out on first death.

The payout on a life insurance policy is tax-free.

It is important to regularly review your life cover to make sure it still meets your needs.