Life Insurance in Newcastle

Level Term Life Insurance only covers you within a fixed ‘term’, therefore, if you passed away within the policy’s term it would pay out, if you passed away outside of the policy’s term, it would not pay out. This type of Life Insurance policy usually runs between 5-25 year terms in 5-year increments.

Term Life Insurance is normally used to cover a mortgage, where the fixed term runs in line with your mortgage term. If you were to die within the policy’s fixed term and still have your mortgage to pay off, the policy will pay out. This means that your remaining mortgage payments will not be left for your family or any other name attached to the mortgage.

As insurance specialists in Newcastle, we have seen that this type of Life Insurance policy is the most popular.

This type of Life Insurance is more suited to property owners with repayments mortgages. And, the majority of people will have repayment mortgages, that is why it is popular!

Your policy value will mirror the outstanding balance remaining on your mortgage; as the amount owed on your mortgage decreases, so does the sum insured. It will also run in line with your mortgage, therefore, when if you pass away during your policy and mortgage term, the amount that pays out will allow your family to pay off the rest of your mortgage.

People like to take out Decreasing Life Insurance in conjunction with other insurance products, as it can work well with income protection and critical illness. If this is something that you would like to discuss with a qualified insurance and mortgage advisors in Newcastle, feel free to get in touch and book a free initial insurance review online.

This policy works in the opposite way to Decreasing Life Insurance, as you would expect it to. It still pays out if you pass away during your mortgage term, however, the value increases over time. It will increase by a fixed amount until your policy term ends.

If you pass away after your policy has ended/after you have paid off your mortgage, the policy will not pay out.

Increasing Term Life Insurance was introduced to protect the policy’s total value against inflation and is usually in line with the retail price index.

Whole of Life Insurance policies are not as popular as Term Insurances, however, it does provide the highest level of financial protection for when you pass away. Remember that it is about finding the right policy for your personal circumstances.

It works exactly how you would expect it to; Whole of Life cover lasts your whole life. When you pass away, the policy will always pay out. Due to the fact that this policy will always pay out, the costs per month are a little more than Level Term Life Insurance.

It is important that you keep up-to-date with all of your payments, otherwise, the policy can become void, no matter how long you have been paying it prior to your missed payments.

If you are in a relationship/married, a Joint Life Insurance policy may be more suitable for you. This policy will pay out if one of you passes away.

Some couples still prefer to take out individual policies, and this is because once one of you passes away, the policy pays out and becomes terminated, therefore, it will not pay out again. If you had two individual policies, each one would pay out.

It may seem like a downside if the policy only pays out once, however, if you originally took out the policy to pay off your mortgage, you would still be able to do so as the money will be released after the death of one of the policyholders.

Death in service can be offered to you by your place of employment. Not all companies will offer Death in Service cover as your company is not obligated to provide it. Those who are offered it may receive it as part of their employee benefits package.

Death in Service usually pays out a lump sum of cash to an employee’s family or a person of their choice if they pass away. The lump sum can be up to five times their annual salary. There are no specific limitations on what can be done with the employee’s money.

Death in Service has nothing to do with if an employee dies in the workplace.

Generally, single homeowners don’t feel the need to take out Life Insurance. Sometimes, they just forget about it and never take it out, however, this can cause problems in the future if the homeowner passes away without a policy in place to cover their finances.

If you are a single homeowner and don’t have a Life Insurance policy in place, if you pass away and still have remaining mortgage payments, they may still go to your next of kin. This could leave financial stress on your family.

Speak to one of our mortgage protection and insurance specialist in Newcastle and find out whether taking out Life Insurance as a single homeowner is the most suitable option for you and your future.