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Life Insurance Advice in Hull

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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.

 

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.

 

What is Life Insurance?

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.

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Different Types of Life Insurance

There are lots of different types of Life Insurance policies, as a Mortgage Broker in Hull, here are the most popular policies that we see people take out:

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:

 

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Our free initial mortgage consultation will last roughly one hour. Lucky for you, as an experienced Mortgage Broker in Hull, we can turn around an Agreement in Principle within 24 hours. All we need is a quick phone call to gather the necessary information. A formal mortgage offer takes about three to four weeks on average.

If you’re an employee, you will usually have to supply three payslips and the latest P60 to prove your income. If you are Self Employed in Leeds, it is typically the latest two years’ tax calculations and correspondings overviews. You will also need to provide proof of ID (Driving license or Passport). Proof of Address (Utility bills, tax bills or credit card statements) and three months’ bank statement. You are proving the deposit built up with an explanation for any significant credits.

The good news is it may be possible to get a mortgage if you are self-employed in Hull. To qualify, you need to submit at least one year’s of accounts, the likelihood may increase your chance of obtaining a mortgage. Most lenders take a look at your salary plus dividend to calculate the maximum mortgage amount. Others may go off your net profit. It all depends on the lender.

The good news is that you may find it a bit more challenging to obtain a mortgage despite having previous credit issues on your record. But it doesn’t mean it’s impossible, and you may still be able to get one! It just means that some Lenders may ask for a slightly higher deposit of around 10-15%.

Most high street mortgage lenders will usually ask for a minimum of a 5% deposit. This percentage may be higher depending on your previous circumstances, e.g. if you’ve had any past credit issues.

The good news is it is possible to have two mortgages in Hull running simultaneously, as long as you can afford to repay the monthly instalments on each of them. If you’re looking to accomplish something like debt consolidation or home improvements, you may be able to place a second mortgage on your home.

An Agreement in Principle typically lasts for 30-90 days. However, this timeframe is up to the Lender. If your Agreement in Principle expires, worry not; you can renew it by getting back in touch with your Mortgage Advisor in Hull.

As a Mortgage Broker in Hull, we recommend that you obtain an Agreement in Principle (AIP) as soon as you can, preferably before you start viewing properties. Having an Agreement in Principle in place when you are viewing houses could potentially allow you to negotiate prices.

Our mortgage process consists of multiple different steps. The first step is to get in touch, and one of our trusted mortgage advisors in Hull will carry out a Fact Find to get a bigger picture of your mortgage situation.

Secondly, you’ll undergo your free mortgage consultation, and your assigned dedicated Mortgage Advisor in Hull will begin searching for mortgage deals that match your circumstances. If they find you an offer that you are happy to proceed with, we can get the ball rolling with your mortgage application.

Next, they will perform a credit check on you to obtain an agreement in principle. Some evidential documents will be required from you to help back up your mortgage application.

Lastly, they will submit your mortgage application and wait for a formal mortgage offer to be issued.

Your free initial mortgage consultation with your dedicated Mortgage Advisor in Hull will last around an hour. During this consultation, we will get to learn a bit more about your mortgage needs and what you are looking for. Once we know more about your personal and financial situation, we will start looking for mortgage deals that will match you perfectly.

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Our 4 step process

Get in Touch

Get in touch with our team and we will schedule you in an appointment with your own dedicated Insurance and Protection Advisor in Hull.

Insurance Review

Your advisor will speak to you and find out your Insurance needs and what you are looking for. This consultation will take roughly 30-mins.

Search for a Perfect Policy

Your advisor will review your Insurance needs and options, then go and try and find you a perfect policy that matches your personal situation.

Taking out the Policy

If your Advisor in Hull finds you a policy that saves you money and you are happy to go ahead with it. Everything is now complete and you now have Life Insurance in place!

A telephone call where we can take some initial details and find out about your plan of action.

Enjoy finding a property!

Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.

Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.

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