Hope Mortgage Solutions believe it’s important to remove the stigma attached to discussing life cover, now that you have made the step towards purchasing a family home its important that your loved ones are taken care of should the worst happen.
Life cover is a policy which will pay out a lump sum in the event of death, this can be arranged over a specified term or you can choose to have cover for the rest of your life. The lump sum benefit can be used to pay off the mortgage, outstanding debts or to cover every day expenses.
Term protection policies can be structured in two ways:
Decreasing term assurance – The sum assured (amount of cover) decreases in line with you mortgage balance, assuming an interest rate of 8%, this is generally the cheapest form of protection.
Level term assurance – this is where the level of cover remains the same throughout the term of the policy.
Hope Mortgage Solutions can assist with writing your life cover in trust, this means you can specify exactly who the benefits are paid out to if not named on the policy and avoid any inheritance tax liability, see more on trusts here.