mother and child life insuranceLife insurance isn’t a legal requirement, but it is an option we recommend pursuing.

Whilst online comparison sites are helpful, they provide life insurance quotes for only the most basic of policies and do not provide expert advice. That’s where an expert, such as an experienced adviser can help. They can take the time to discuss your requirements and provide advice and guidance on what policies would be most suitable, and why. Taking advice on this is fee-free.

If you own a property, it is highly likely that you have a mortgage – a mortgage will probably be the largest debt that you will have during your lifetime. A life insurance policy would ensure that your mortgage would be repaid, leaving no debt behind for your loved ones, should you pass away. Whilst a mortgage may be an obvious reason to take a life insurance policy, there are other reasons too, such as:

–      Protecting loved ones and their lifestyles from financial burden if you were to pass away.

–      Ensuring that your loved ones and dependents don’t need to change their lifestyle.

If you are purchasing, or own a property with a spouse or partner, it is often the case that the mortgage and lifestyle of the clients are dependent on both parties. This doesn’t necessarily mean that both parties earn the same money, as they could contribute to the family lifestyle in other ways.

An adviser will be able to discuss the above in more detail. There are different mortgage types; repayment, interest only, or a combination of the two. Likewise, there are different types of life insurance to meet your requirements. For example, Decreasing Term Assurance (DTA), where the amount of cover decreases in line with your mortgage, or Level Term Assurance (LTA), where the amount of cover remains consistent throughout the term of the policy.

However, life insurance doesn’t just have to be for those who have a mortgage, it can be used to protect your loved ones, providing security for those who may be left behind. The two points to discuss would be, if you were to pass away would you leave behind a debt for anyone? Is a loved one’s lifestyle dependent on you, and would you want to protect this for them?

In taking guidance and advice from Andrew, our experienced adviser, you can ensure that discussions are also held around whether these policies need to be placed in Trust, and if they do, understanding the benefits of doing so.