Life Insurance is a type of policy that covers your next of kin with financial support when you sadly pass. There are different types of Life Insurance policies. Most are designed to pay out a lump sum to your loved ones to help them deal with everyday money worries such as mortgage payments, childcare costs and bills.
If you consider taking out Life Insurance in Hull, we would recommend that you speak with one of our Protection Advisors in Hull. They will work alongside you to understand your personal circumstances to try and find you the most suitable insurance product for you.
Anyone eligible and concerned with what is financially left behind after they pass away may want to consider Life Insurance. Taking out cover is not a compulsory action for your mortgage, or at all.
That being said, if you are living with a partner or friend, you will likely not wish to leave them struggling with your leftover finances. This is one of the many circumstances where Life Insurance in Hull could be essential to you.
The amount of cover you will receive, and the premiums you have to pay, will depend entirely on your personal circumstances and the kind of policy you choose. Each policy is different. Usually, you would pay a premium to the insurance providers for the duration of your policy.
As qualified Protection Specialists in Hull, we usually see that the younger and healthier you are, the cheaper your quote may be. Your Life Insurance quote will consider the following, lifestyle, age and medical history. 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.
The good thing about taking out Life Insurance in Hull is that you can choose what your payout is used for. You select your specifics. For example, you may only want the money to be used on debts, such as a mortgage.
Remember, Life insurance is a policy to provide financial support for family members, replace lost income or pay off any outstanding debts owed in the person’s name.
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:
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 policy’s 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. This means that the mortgage payments will not fall to family members or any other name attached to the mortgage.
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.
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.
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.
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.
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.
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.
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 in Hull will give your family financial certainty and will take a little stress off them in an already difficult time.
If you are looking into Protection Advice in Hull, we know that taking out Life Insurance in Hull, 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 more by heading to our other insurance guides and pages.
If you are thinking of taking out more than one insurance policy, there are other options to explore with Hullmoneyman. We offer menu plans to allow you to set up multiple different policies at once. Contact us to find out more and we will see whether we can help.
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