Life Insurance is a great way to help protect your family from the financial worries they could face if you were no longer around. Life insurance pays out a cash lump sum if you die within the term of the policy.
Level Term Assurance:
This will give you the same amount of cover throughout the life of the policy and will pay out that amount if you make a successful claim.
Decreasing Term Assurance
This is sometimes known as Mortgage Term Assurance – the level of cover will decrease over the term, usually to match your decreasing mortgage amount (on a repayment-based loan) and pay out the current amount when a successful claim is made.
Family Income Benefit
This allows the sum assured is paid as a regular tax free benefit (under current legislation tax year 2016/2017) rather than a lump sum. This can make it easier to pay for the monthly costs of running your household and covering school fees etc.
Source: 30/01/2017 based on a 34 year old taking a policy with Aviva, with a £3333.33 per month benefit over a 23 year term.
Your family could receive £3333.33 p/m tax-free, every month for the balance of a 21 year term from the time of the claim, for just £21.44 per month.
Actual costs will depend on individual circumstances and providers underwriting. (Based on a non smoker with a healthy lifestyle in good health)
Progress FS Ltd can help you decide whether you should take out life insurance, how much you need and how long you need it for. We can find the right policy for you.
Progress FS Ltd believes in looking after you and your family as well as your mortgage. Talk to us about your current circumstances and we’ll help and assist in finding the correct policy to protect you.