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We strongly recommend that if you are taking out a new mortgage then you carefully consider the following products. As independent advisors we will be able to source the cover you require at the most competitive prices. Life cover also known as life assurance or life insurance, can help protect your family's or dependants' financial security by paying out a cash sum in the event of your death. It can also help to protect your mortgage or business in the same way. We will also advise you as to whether the life cover plans are flexible so should your circumstances change, for example getting married or taking out a mortgage, we make it easy for you to increase your level of cover to help meet those changes. Life cover can often offer a high level of protection for low monthly payments. And once taken out, your payments for life cover will not change. Term insurance Term insurance is the cheapest - and simplest - form of life insurance. You insure yourself for a set term - until a loan is paid off, for example. It doesn't contain any investment element - it simply promises to pay out if you die within the term. If you don't die within that time, you receive nothing. Term policies can either be level or decreasing. A level policy simply means the sum assured remains 'level throughout the term of the policy. If you die on the first day of the policy, you get exactly the same sum as you would if you died near the end of the policy. A decreasing term assurance policy on the other hand, will pay out more at the beginning of the policy than it would at the end. The way a term policy pays out can also come in one of two ways. Those that pay out a tax-free lump sum on death and those that pay a tax-free income to the end of the term, known as family income benefit policies. As usual there are pros and cons to both, a lump-sum policy can be more flexible because it allows your family to have a mixture of lump sum and income upon your death, but the income may be dependent upon investment returns at the time of death. A family income policy on the other hand is often cheaper because the liability is always decreasing for the insurer, for example, if you die in the 18th year of a 20-year policy, the insurers would only have to pay income for two years. It's also easier to work out the level of cover with this type of policy because you simply work out the income you would need to replace. Mortgage Protection Mortgage Protection is a kind of Term Assurance specifically designed to repay, on death, during the term, the amount outstanding on a 'capital and interest' repayment mortgage. In other words, if the policyholder(s) die prematurely, the outstanding loan amount on the mortgage will be repaid in full. Mortgage Protection policies are another name for Decreasing Term Assurance. Critical illness This is insurance to cover the policyholder against diagnosis of a critical illness such as cancer, heart attack, stroke or multiple sclerosis. A Critical Illness Benefit is an additional financial benefit, often a lump sum, paid on diagnosis of such critical illness. Critical illness cover bridges the gap left by life insurance which only pays out if you die. These days, people are surviving illnesses that were once fatal, but having survived, many people are unable to return to work or find that they have to pay for special medical care. Because traditional life assurance cannot meet these costs, health insurance companies now offer critical illness or dread disease cover. Some schemes also pay out on loss of sight and hearing, for major burns, and for any disease diagnosed as being terminal within 12 months. Very few cover AIDS and its related diseases. The cost of critical illness cover depends on your age, sex, lifestyle, whether you smoke, any pre-existing medical conditions and the amount of money you wish to insure yourself for when a critical illness is diagnosed. You may take out critical illness cover separately or as part of a life assurance plan. Waiver of premium Often when illness strikes, money is short and a waiver of premium is used to continue the life of the Plan during illness periods so that the term of the Plan is not broken. The Insurer therefore pays the premium during this period of illness or when you are claiming benefit, by a waiver of the monthly premium charge. |
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We normally do not charge a fee for mortgage advice if you apply to us via our website, however a fee paying option is available. Our typical fee is £250.
Flexible.mortgage.net is an Appointed Representative of Personal Touch Financial Services Ltd, which is authorised and regulated by the Financial Services Authority.
The Financial Services Authority may not regulate Buy to Let Mortgages or Personal Loans and do not regulate Conveyancing or Wills.
Registered in England Company 4573027.