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I’m a Single Homeowner in Hull, Should I take out Life Insurance?

You may not be married, nor do you have any intentions in the near future to settle down with kids, but that doesn’t mean you wouldn’t benefit from looking into life insurance in Hull. Even for those of you who are single homeowners, there are still plenty of completely valid reasons to take out life cover.  

Having a life policy in place can be a huge support to your family in dealing with any debts that may arise, such as outstanding mortgage payments, if something untimely were to happen.

How does life cover affect your mortgage? 

Generally speaking, the purpose of life cover is to cover any mortgage debts. The policy will usually be set up to pay out a lump sum, equivalent to the cost of the current home loan, should the policy holder (the person with the life cover) pass away whilst still making monthly mortgage payments.

If you are living with a partner or have had any children, the cover might even get extended as a means of providing your dependants with an income boost to cover any living costs for the time being.

The extra protection here likely won’t be necessary for single cover applicants, but taking out some insurance to cover your mortgage is still something we believe is worth doing.

Paying Back The Mortgage Loan Amount

If a single homeowner dies at any point prior to their mortgage getting paid off, their bank or building society can look to pay back the mortgage loan from their late customer’s estate, i.e., their collective belongings (accumulated assets is a term you might see used for this), such as a car or something else of worth.

In most cases we find that in order to pay off the remaining mortgage balance, the property will get sold at auction. If the home has fallen into negative equity, the lender has the right to demand that the estate must make up the difference.

Alternatively to this, the lender can demand that the property be sold and any surviving family members are not able to make up any shortfall. Making things worse here, if the probate process happens to be drawn out (the probate is the time of which the individual’s estate is sorted out), the lender can actually continue to add interest charges, increasing the total amount to be paid. Immoral? Potentially. Illegal? Unfortunately not. 

Taking out life insurance will help to prevent these problems from occurring. 

Speak With One of Our Mortgage & Protection Advisors in Hull

If you are looking at your options for potentially taking out life cover at some point, please get in touch and speak to one of our dedicated protection advisors in Hull. If you have any plans of becoming a first time buyer in Hull or you are already a homeowner with a change in circumstances, it makes sense financially and personally to get on top of it now rather than leaving it too late.

A life insurance policy means that an inheritance can be left to children or grandchildren, regardless of if there is any equity left in the home at the point of passing. 

Life Insurance Hull

Life Insurance Hull

Life Insurance is a vague term as it covers a lot of ground; in fact, there are several different types of Life Insurance. In this insurance mortgage guide, we will show you what they are and tell you why they are important to take out.

Different types of Life Insurance

Life Insurance
Level Term Life Insurance
Decreasing Term Life Insurance
Increasing Term Life Insurance
Whole of Life Insurance
Joint Life Insurance
Death in Service
Taking out Life Insurance as a Single Homeowner
Our Insurance Advice Service in Hull

If you’re looking to take out Life Insurance, it’s definitely worth speaking with a Mortgage & Protection Specialist in Hull. We offer Life Insurance Advice in Hull and we would advise that you take our free Insurance consultation before taking anything out as it may not match with your personal circumstances.

Especially if you don’t know what you are doing, Life Insurance can get complicated. Along with lots of different types of Life Insurances, you also need to choose what your policy covers and how long it lasts etc.

Life Insurance in Hull

Life Insurance pays out a lump sum of money in the event of death. The money is usually passed
down to a family member or friend.

In the event of a claim, the cover can either pay out the whole sum insured at once or through
regular payments; it’s up to the person who takes out the cover.

It was introduced to provide financial support for family members, replace lost income or pay
off any outstanding debts owed in the person’s name such as a mortgage.

The sum that is paid out changes depending on the type of cover that was taken out. The good
thing about Life Insurance is that you can choose exactly what your payout is used on. You
choose your specifics, for example, you may only want the money to be used on debts such as
a mortgage or car loans etc. You choose your plan.

Level Term Life Insurance

With Level Term Life Insurance, you will still get a payout, however, you will only be covered for a fixed
‘term’. This policy only pays out if you die within your policies term. They usually run between 5-25 year terms in 5-year increments.

Term Life Insurance is often used to cover a mortgage. People usually take out this policy that’s
in line with their mortgage term. Therefore, if you were to die and still have your mortgage to
pay off, the policy will pay out the This means that the mortgage payments will not fall to family
members or any other name attached to the mortgage.

Decreasing Term Life Insurance

As a Mortgage Broker in Hull, we’ve found that this type of Life Insurance policy is the most popular.

You may be asking “why would you want to take out a policy that decreases in value?”. Well, this policy is targeted at homeowners with repayment mortgages – which is the majority of people. This policy is usually taken out to pay off the outstanding mortgage balance should you die.

The policy’s value mirrors the outstanding balance remaining on your mortgage. As the amount owed on your mortgage decreases, so does the sum insured.

Decreasing Life Insurance is typically taken out alongside other Insurance products depending on personal circumstances. This is why we always recommend speaking to a Mortgage & Protection Specialist in Hull, we can help recommend the most suitable insurance for your needs.

Increasing Term Life Insurance

This type of Life Insurance policy will still payout if you die within your fixed term. It works in the opposite way to Decreasing Term Life Policy.

The difference with Increasing Term Life Insurance is that the amount that you are covered for increases as your term goes on. It will increase by a fixed amount until your policy term ends.

This type of Life Insurance was introduced to protect the policy’s total value against inflation and is usually in line with the retail price index.

Whole of Life Insurance

As a Mortgage Broker in Hull, we’ve learnt that the Whole of Life Insurance policy is not at the forefront of the insurance market, however, it is still helpful and it may be the policy that suits you most.

The Whole of Life policy is exactly how it sounds, the cover lasts your whole life. When you die, the policy that you took will payout. The costs that come with Whole of Life Insurance will be a little more than a Level Term Life Insurance, however, you are covered for your whole life and not just a fixed term. Assuming that you’ve kept up-to-date with your life insurance payments, your cover will apply for your whole life.

This type of insurance is usually used for family protection and part of inheritance tax planning.

Joint Life Insurance

If you are in a relationship/married, you could consider taking out a Joint Life Insurance policy that will payout in the event of one of you dying. You could still have two separate Life Insurance policies if you really want to, however, having a Joint Life Insurance policy is often cheaper than taking out two different ones.

The way this policy works is that if one person dies, the policy pays out, and then ends. This may seem like a downside to the policy, but if you originally took out the policy to pay off your mortgage, you would still be able to do so as the money will be released after the death of one of the policyholders.

Death in Service

This type of Life Insurance cover may be offered to you by your place of employment. Your company is not obligated to provide Death in Service cover, however, some do as part of their employee benefits package.

Death in Service is usually a lump sum of cash paid out to an employee’s family or a person of their choice if they die. This sum can be up to 5 times their annual salary. There are no specific limitations on what can be done with the employee’s money.

The payout has nothing to do with if an employee dies in the workplace.

Taking out Life Insurance as a Single Homeowner

Just because you are a single homeowner, doesn’t mean that you should disregard all Life Insurance options.

If you have settled into a new place and are currently living on your own without children or a partner, it’s not unusual for people to forget about life insurance. People also sometimes choose to ignore it and this is because it doesn’t always apply to single homeowners.

What you should think about though, is that your circumstances could change in the future, and if they do, then Life Insurance could become an essential thing to have.

Speak to one of our Mortgage Protection and Insurance Specialist in Hull and find out whether taking out Life Insurance as a single homeowner could be beneficial for you.

Our Insurance Advice Service in Hull

We want to make sure that you have the right policies in place to allow you to leave your family in the best position possible if you die. Taking Life Insurance will give your family financial certainty and will take a little stress off them in an already difficult time.

As a Mortgage Broker in Hull, we know that Life Insurance, no matter the type of cover, is extremely beneficial and can put you at ease knowing that your family won’t have to pay for any of your debt or payments.

If you want to find out more about Life Insurance, take up our free Insurance consultation in Hull. We will explain the policies available to you and why they could benefit your and your family’s personal and financial situation in the future.

As a Mortgage Broker in Hull, we’ve found that Life Insurance is typically taken out in conjunction with other policies, depending on your personal situation. Find out about other Insurance options here:

Income Protection Insurance Advice in Hull

How does Income Protection work?

Income Protection Insurance got designed to pay out a monthly benefit if you are not able to work due to sickness or accident. The applicant can decide along with the help of their mortgage Advisor in Hull how much cover to take out.

Additionally, how long they are prepared to wait before they are entitled to put a claim in. Income Protection insurance can be costly compared to taking out Life Insurance in Hull. As you are much more likely to be unable to work due to illness than pass away.

The monthly benefit will continue to get paid out until you return to work unless you have selected the “Budget” version of the policy. It usually only pays out for 24 months but is considerably cheaper.

The considerable advantage of Income Protection Insurance is that unlike Critical Illness Cover it pays out for whatever is preventing you from working. In Contrast to Critical Illness which is just a list of specified illnesses.

This sort of policy is prevalent amongst the self-employed and also employed applicants who do not benefit from Employer sick pay schemes.

Get in Touch with a Mortgage Advisor in Hull Today

It’s essential to us that all of our customers get given an equal opportunity to take insurance through ourselves. We offer all of our customers a free, no-obligation protection review.

That’s where we’ll discuss with you why having Mortgage Protection Insurance is essential to have in Hull and have a look at any existing policies you have in place and assess their suitability.

We’ll then recommend which products, including critical illness and Income Protection that meet your needs.  If required, we’ll then tailor the plan to match your available monthly budget. 

Why Mortgage Protection Insurance is Essential to Have in Hull

Mortgage Advice in Hull | Importance of Having Insurance

Mortgage Protection Insurance is a term that is used to encompass different kinds of cover. This cover is designed to limit financial stress on you and your loved ones from any unforeseen circumstances that may occur.

Here Malcolm has compiled a video to talk to you about the significance of having the correct insurance in place for your situation. Due to the past events of the coronavirus pandemic, the importance of health and getting insurance is more prominent than ever.

What Insurance is Right for you? | MoneymanTV

There are variations of insurance to choose from when it comes to protecting you and your family. Here at Hullmoneyman, we can compare lots of providers to find you the best policy for your circumstances. The following insurance policies that we can offer to you are:

  • Life Insurance
  • Critical Illness Insurance
  • Income Protection Insurance
  • Menu Plan
  • Family Income Benefit

For more clarification, get in touch and speak with one of our experienced Mortgage and Protection Advisors in Hull today, our team will always be at the other end of the phone or email when you need to talk.

Life Insurance Cover

Life insurance is an insurance policy that minimises the financial impact on your loved ones in the event you or another joint policy holder pass away. Our Mortgage Advisors in Hull can run through all the different types of Life cover accessible to you and advise the most suitable plan for you.

Critical Illness Insurance

Critical illness cover is an insurance policy that covers serious illnesses detailed within a policy. Typically, these will include Stroke, heart attack, certain types and stages of cancer, and more.

Some illnesses will not be covered for example certain types of cancers. And you are unlikely to be covered for pre-existing health issues you knew you had prior to taking out the insurance. As mentioned, the specific illnesses covered and not covered will be detailed in your policy.

The most important thing is that the benefit gets paid if you fall victim to one of several specified critical illnesses and pays out whatever the long-term prognosis of that illness. The type of conditions covered vary from company to company; that’s why this type of insurance cannot be solely price-driven, and seeking specialist Mortgage Advice in Hull is advised.

In practice many businesses will offer Life and Critical Illness Critical cover as a combined policy and would usually payout on the “first event,” namely whatever happens first – either death or a severe illness – the payout is made. They could also get written on a single or joint life basis.

Income Protection

Whereas Life and Critical Illness cover pay out a lump sum, Income Protection pays out a monthly sum intended to replace your wages in the event of you being unfit to work. In contrast to the Critical Illness cover, there are no limitations on the illnesses or injuries covered, the only factor being whether they make you unfit to work.

There are, however, the restrictions on how much you can cover and how quickly benefits would start to get paid. Such As Life and Critical Illness cover, these policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies get written on a single life basis.

Menu Plan

You can combine Life Insurance, Critical Insurance and Income Protection, into what’s called a menu plan. The providers do give you a discount each time you add a benefit in, and that can be a cost-effective way of taking cover.

With a Menu Plan, you can mix and match a range of cover and benefits to tailor a plan that suits your needs and budgets. We strongly advise all our customers should the worst happen, least you have covered yourself and your family, to find out more speak to one of our mortgage Advisors in Hull today.

Family Income Benefit

The least common of the mortgage protection policies but can often be useful – especially for those with young households. These plans can get taken to Life and/or Critical Illness Cover, and get underwritten on the application in the same way.

However, in contrast to the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Consequently, it can replace the payment of the primary worker for several years, dependent upon a particular client’s circumstances and, because of this would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.

Get in Touch with a Mortgage Advisor in Hull Today

Many people have one or more of the different types of policy, and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. However, affordability plays a massive part, whilst it would be fantastic to cover yourself for every potential opportunity.

Our Mortgage Advisors in Hull are here to discuss with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget. To find out more, give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists Advisors in Hull today.

Critical Illness Insurance Advice in Hull

What is Critical Illness Insurance?

Critical Illness Insurance pays out a lump sum if you are diagnosed with one of the conditions on the policy such as Cancer, Heart Attack or Stroke. Sometimes Insurers receive criticism for declining claims when someone is very ill but with an illness not covered on their policy but most major providers actually pay out over 90% of claims.

If claims are denied it can also be because the claimant did not disclose an underlying medical condition they have when they took the policy out.

In the event of a claim the lump sum is paid out irrespective of whether the claimant returns to work or not, the key thing is whether the illness they had matched the definition on their policy.

The claimant can use the lump sum they receive for any purpose they wish. Be this to repay their mortgage, pay for medical care or make modifications to their home.

Different insurers cover different illnesses on their policies and it’s wise to take advice prior to selecting a policy. This will ensure that you end up with one that is suitable for your needs. Critical Illness Insurance is much more expensive than life cover because the chances of you making a claim are far higher.

Your chances of surviving the types of conditions covered are far higher than they were 30 years ago. However, if you are unfortunate enough to contract one of them then there are often financial consequences. Hence the popularity of the cover, especially for applicants who have mortgages or children to think about

Our Critical Illness Insurance advice service

It’s very important to us that all of our customers are given an equal opportunity to take insurance our through ourselves.  We wouldn’t be doing our job right if we didn’t mention it! 

We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability.  We’ll then recommend which products, including critical illness and income protection that meet your needs.  If required, we’ll then tailor the plan to match your available monthly budget. 

Pension Advice in Hull

Advice for People Looking to Get a Pension

The idea of sorting out a pension can be slightly off-putting; however, it is worth doing as a pension truly benefits you later in life. If you are approaching the legal age of retirement, speaking to an Independent Financial Advisor in Hull may be of great use to you.

Over the years it’s likely you will have paid into various pension plans, be that personal or workplace. A surprising number of clients often have no idea how much they’ll be worth by retirement!

Sometimes though, the pension in place may no longer be suitable. This is something your advisor would be able to look into for you. It is always worth paying for some advice, especially if you have pots totalling over £10,000. This is known as a Pension Health Check and your advisor would be happy to go through it with you.

Part of the process is finding a Pension Advisor that you can trust. You’ll be able to build up a long relationship with them and they’ll review your pensions often. They do this to ensure you are on the right track towards the retirement income you are aiming for.

Make sure your provider controls all your pensions

The first advised port of call before considering any pension transfer is to seek advice from an experienced and qualified Pension Advisor in Hull who will make a personalised recommendation.

Often customers find that placing all of their plans with one provider makes everything so much easier to manage and leaves them less to worry about.

If you haven’t had your pension reviewed lately, there could be a chance that plans you arranged are in funds that are underperforming or are subject to expensive charges. This could affect how much you receive in your retirement, so it’s always best to review them regularly.

Once you’ve reached retirement

As the call of retirement draws closer, it really is a great opportunity to seek professional advice from an Independent Financial Advisor in Hull.

There comes a time, at a certain age, when you are eligible for Pension drawdown (aka income drawdown). This allows you to cash in a percentage of your pension, without paying any tax. The criteria for this has been known to change often though, so staying in touch with your Pension Advisor is the best way to keep up to date.

Your pension provider may offer you an uncompetitive annuity when you come to draw your pension, however, speaking to a qualified Pension Advisor will potentially open up more options for you and may even increase your income in retirement.

If you would like some pension advice, please get in touch. We’d love to point you in the right direction!

Mortgage Advice in Hull

Hullmoneyman.com & Hullmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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© 2021 Hullmoneyman

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