Life Insurance

Covering the bills
You don’t stop spending money when you get ill or lose your job, and the mortgage still has to be paid by your family or estate if you die. Although having enough money in times of trouble won’t solve every problem, it will remove one of them and enable you or your loved ones to concentrate on what’s important – living.

Life assurance
Adequate life assurance makes sure that those left behind aren’t left with a mountain of debt.

There are so many different kinds of insurance and so many life assurance companies with similar offerings that and it is just one of those things that we forget about but do you know what cover you have and is it still appropriate for your current situation. Is it Decreasing, Level, Whole of life, Guaranteed Premiums or reviewable premiums.

No one provider can be the most competitive for all ages or lifestyles. Often, particularly, if life assurance has been taken out with a tied provider without a market comparison you may well be paying a lot more than necessary or indeed be penalised for a premium health rating that another underwriter would be more lenient with.

Many of us have loans – if nothing else, a mortgage – and repayments need to continue, whatever happens.
Your mortgage provider may have arranged for life assurance when you took out the mortgage – it is a good idea to review this, as it may not be the most cost-effective option for you. You need a level of cover that is appropriate for your circumstances at a price you can afford.

Having life cover over the amount of your Mortgage loan is also desirable, as this protects your loved ones from the worry of other expenditures in life and can also help to ensure your dependants have sufficient income replacement where pension funds have not had time to grow sufficiently.

While it is rare to have too much life cover, care must be taken that life insurance wouldn’t take your estate over the Inheritance Tax Band devaluing the sum assured, as IHT at 40% may be payable on the benefit paid, if no IHT planning has been effected, this could be dealt with by simple trust forms and a financial adviser can help you get the best deal and ensure the right planning is in place, whatever happens.

Typical Life Only Insurance Costs for £100,000 over 20Yrs with Guaranteed Monthly Premiums

Mortgage Protection – Decreasing in line with Mortgage.
Male Non Smoker age 20:   £5.00        Male Smoker age 20:   £6.70
Male Non Smoker age 30:   £5.30        Male Smoker age 30:   £7.20
Male Non Smoker age 40:   £7.60        Male Smoker age 40:  £13.00
Male Non Smoker age 50:  £16.66       Male Smoker age 50:  £34.00

Family Protection – Remains the same throughout the term.
Male Non Smoker age 20: £5.40          Male Smoker age 20: £7.40
Male Non Smoker age 30: £6.00          Male Smoker age 30: £8.80
Male Non Smoker age 40: £10.40        Male Smoker age 40: £18.20
Male Non Smoker age 50: £23.80        Male Smoker age 50: £49.40

Typical Life AND Critical Illness Insurance Costs for £100,000 over 20Yrs with Guaranteed Monthly Premiums

Mortgage Protection – Decreasing in line with Mortgage.
Male Non Smoker age 20:  £11.00       Male Smoker age 20:  £14.00
Male Non Smoker age 30:  £14.00       Male Smoker age 30:  £19.00
Male Non Smoker age 40:  £27.00       Male Smoker age 40:  £47.00
Male Non Smoker age 50:  £76.00       Male Smoker age 50: £143.00

Your home may be repossessed if you do not keep up the repayments on your mortgage or any loan secured upon it.
Veracity financial planning is not responsible for, nor does the Financial Services Authority regulate advice given with regard to taxation matters regard to trusts; some aspects of tax advice; commercial mortgages or second charge secured lending.