Amy Kadir Lonsdale Mortgages broker and member of the Lonsdale St Albans mortgage broking team recommends clients review their life insurance cover.
This is the third of a series of articles that consider why we recommend our clients annually review their protection policies.
What is Life Insurance?
Life insurance pays out a chosen lump sum, to your dependents in the event of death within the chosen policy term. There are different types of life insurance cover:
• Level Term Assurance pays out a chosen lump sum if you die within the chosen policy term.
• Decreasing Term Assurance also known as Mortgage Protection pays out a reducing lump sum if you die within the chosen policy term, this is usually used to clear a repayment mortgage where the balance reduces over the term of the mortgage.
• Family Income Benefit pays out a monthly income to your dependents if you die within the policy term. You choose the amount to be paid out and the period of the cover. Payments usually stop once the policy term ends.
‘Clients don’t normally like to talk about life assurance but as a mortgage adviser it is an important subject and something I always discuss if I am offering mortgage advice. If you have a family and they are financially dependent on you it is important to consider how they would manage if you died. When we organise life assurance for our clients they are always relieved after we have sorted out their policy and they can see that they have provided financial support for their partner and/or children should anything happen to them. It does give them peace of mind as they wouldn’t want their family to have the extra burden of financial worries at such a difficult time.’
‘I would initially recommend all employees check if your employer offers life insurance. If your employer doesn’t offer a policy and you think you need life assurance do contact us on 01727 845500 as Lonsdale Mortgages can offer protection advice. Our mortgage broking team will consider your family’s financial circumstances and review your protection cover. Remember it is always worth reviewing your protection policies when you have a mortgage review to make sure your policies are protecting you for what you need.’
Please note: We recommend not to cancel any existing policies prior to taking advice and having a new policy already in place.