Protection

Life Insurance

We all like to think that our family would be protected should the worst happen to us.  Whether it’s to cover a mortgage, or simply to ensure your loved ones have something in their pockets, life insurance can help to make a difficult time a little bit easier.

What is life insurance?

Life insurance  is a policy that will pay out a lump sum if the policyholder dies during the term of the policy and is designed to give the policyholder’s dependents financial reassurance if the worst was to happen.  This money can be especially useful to cover expensive funeral bills, clear debts and to cover mortgage payments along with regular bills if required.

Each life cover policy will come with a fixed term length.  This can be specified by the policyholder when applying for life insurance.
When deciding what type of life assurance policy is most suitable for your needs, there are two key types of policy you should consider, level and decreasing term assurance.

  • Level term assurance

A level term policy is fixed at a set amount.  No matter how far into the term of the policy that a claim is made, the amount paid out will be the same.

  • Decreasing term assurance (mortgage policy)

A decreasing policy varies in that it is bought to pay off the cost of a mortgage if the policyholder was to die.  As a result the amount paid out in the event of a claim will decrease over time roughly in line with the balance remaining on the mortgage.

Whole of life policy

A whole of life policy is Life Cover that lasts for as long as you need it so you can

you can be reassured that no matter what happens in your life, you’ll be covered.

When you die, your spouse could still be faced with a drop in income – if they depend on your pension, for instance.  And they might have immediate costs to think about. For example, the average funeral now costs £2,500. And, if your estate is worth more than £325,000 when you die, your beneficiaries might have to pay some Inheritance Tax, under current tax rules.

How can a whole of life policy help you?

  • You can guarantee your loved ones a lump sum when you die

There’s no maximum term for Whole of Life Cover – it pays out a lump sum whenever you die. So, you can be sure you’ll leave something behind for your loved ones.

  • You can cover the Inheritance Tax your loved ones might have to pay.

You can use Whole Of Life Cover to insure against any Inheritance Tax your family have to pay on your estate. So when you die, your cover takes care of the tax bill, and your loved ones get everything you leave behind.

  • You can help your loved ones pay their bills

Even if there’s no Inheritance Tax to pay on your estate, the lump sum could help your family in other ways. For instance, it could help towards funeral costs and other immediate expenses.

  • Or you could just leave your family a gift.

 

Lots of people want to leave something for their family to enjoy. So, the lump sum could just be a gift for your loved ones. Your children could use it to pay off their mortgage – or put it towards the cost of your grandchildren’s education.

Planit Mortgages do not charge a fee for advising & arranging protection products

Planit Mortgages, 3 Harrison Way, West Moors, Ferndown, Dorset, BH22 0NL

We work all across the UK including London. Our local markets include: Dorset, Hampshire, Poole, Bournemouth, Christchurch, Southampton, and surrounding areas.

Planit Mortgages is the trading name of Planit Lifestyle Limited which is authorised and regulated by the Financial Services Authority.
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Registered in England and Wales No. 5894832. Reg. Office: Sutton House,Sutton Holmes,  Verwood, Dorset. BH21 8NQ.

The Financial Services Authority does not regulate Bridging Finance and some forms of Mortgages, Loans and Debt Consolidation.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based within the UK, or UK expatriates.