LEVEL TERM LIFE ASSURANCE

You choose the term for the policy and you choose the amount of cover that you wish to be insured for. It is vitally important that you insure your life and your spouse or partners life for the right amount and to work this out you will need to have to take the following factors into consideration: -

	Enough to cover the remaining balance of the mortgage
	Enough to pay off any other outstanding debts
	Enough to replace your income for your remaining family
	Security for your children e.g. money to pay for their further education
	Enough to give your family some comfort whilst they are grieving
	Enough to cover funeral costs

All these factors and more need to be assessed so that you can work out the right amount to give your family the protection and support they will need if you are not there to provide for them.
Our Advisors can help to advise you how to do this.

DECREASING TERM ASSURANCE (for repayment mortgages)

This is essentially just an insurance policy to cover the outstanding mortgage balance should you or your spouse or partner die before the mortgage is fully paid off.

The sum insured is set at the rate outstanding on the mortgage balance and decreases in line with the mortgage balance over the years.

This is a much cheaper option which is why it can be popular especially for first time buyers watching their budget however it must be noted that the problem with this type of insurance is that most people end up moving several times and the policy has to be adjusted constantly which can become more expensive as time goes by and it will not allow for any additional funds to cover other costs associated with the loss of a loved one.

Your home may be repossessed if you do not keep up repayments on your mortgage.