Life Insurance That Protects the People Who Depend on You
If you were no longer here, would your family be able to keep their home? Life insurance pays a lump sum if you die during the policy term, so the mortgage can be cleared or reduced and your family can focus on each other rather than on money.
The Simplest Way to Protect Your Home
When you take out a mortgage, you take on a debt that usually runs for 25 years or more. If you die before it is repaid, the debt does not disappear. Your partner or family would need to keep up the repayments on their own, sell the property, or find another way to clear the balance.
Life insurance closes that gap. A policy that matches your mortgage means the loan can be repaid if the worst happens, leaving your family in a home they own outright. Many people also add extra cover to replace lost income, pay for childcare or fund their children’s education.
Some employers provide death in service benefit, typically a multiple of salary. It is a valuable starting point, but it usually ends when you leave that job, and it may not be enough to clear a mortgage on its own. If you are self-employed or a company director, you may have no workplace cover at all.
Choosing the Right Structure
Level term life insurance
Decreasing term life insurance
Family income benefit
Joint life insurance
Whole of life insurance
We will explain how each option works in practice and recommend the structure that fits your mortgage, your budget and your family.
Getting the Amount and the Term Right
The right amount of cover depends on what you want the policy to achieve. As a minimum, most homeowners want enough to clear their outstanding mortgage. From there, it is worth thinking about other debts, funeral costs, how long your family would need to replace your income, and any future costs such as university fees.
The term matters too. Mortgage cover usually runs for the same length as the mortgage itself. If you have young children, you might want family cover to last until they finish full-time education.
We review your current mortgage, any existing policies and workplace benefits before suggesting a figure, so you are not paying for cover you do not need or leaving a gap you did not know was there.
Making Sure the Money Reaches the Right People
Many life insurance policies can be written in trust at no extra cost. A trust lets you choose who receives the payout and can mean the money is paid more quickly, without waiting for probate. In some circumstances it may also keep the payout outside your estate for inheritance tax purposes.
We will explain how trusts work and help you complete the insurer’s trust forms. Whether a trust is right for you, and which type, can depend on your wider financial and family position, so we may suggest you take legal or tax advice as well.
Futurewise Finance does not give tax advice; tax advice is provided separately by Futurewise Accountancy or your own accountant.
Frequently Asked Questions
Is life insurance a condition of getting a mortgage?
Lenders do not usually insist on it, but it is strongly recommended for anyone whose family would struggle to keep up the repayments without them.
What affects the cost of life insurance?
Your age, health, smoking status, occupation and lifestyle, plus the amount and length of cover you choose. Taking cover out earlier usually means lower premiums.
Will my policy pay out in every circumstance?
Policies have exclusions and conditions, and insurers rely on the answers you give when you apply. We help you complete the application accurately so your family can rely on the cover when it matters.
Explore more of what we offer
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