What role does Life Insurance cover play when you are getting a mortgage?
When you first get a mortgage very rarely does it cross your mind,
Addressing this question aligns with the core values of our business, which is working with our clients from when we first meet you to when you’re mortgage free.
In this way, we’re sticking to our core values when we talk to you about protecting your family financially.
Why should you take out Life Cover Mortgage Protection?
Life cover mortgage protection is not something for you, it is for those around you.
Ask yourself. If I’m not around what happens?
If you think there’s going to be an adverse impact on you not being around then you need to find the best life cover for your circumstances.
Maybe they inherit the property. It may be that the children go to the right school. So, if you weren’t around would that happen?
Money gives you options, so conversely no money means no options. Money is just a tool to give you freedom to do the things you want to do.
So, this is a way that we can give you and your family the freedom to carry out your plans, should the worst happen.
If you’re using variable pay to get mortgage, a bonus or commission, you’ll find that any work life insurance benefit doesn’t cover bonuses or variable elements in your pay. So, it might not be sufficient to clear the mortgage.
Our primary concern is the mortgage, can we clear it?
The level of life insurance cover will always be related to the mortgage.
We look to match the type of life insurance cover you have with your mortgage.
There are primarily two types of insurance when it comes to life insurance cover.
This will then decrease with the mortgage and is typically used for a repayment mortgage.
Level term is flat through the mortgage term and is typically used for paying off an interest only loan.
If you are doing part-and-part, then you might take out a combination of the two.
You might find that you want Index Cover, so you could offset the cost of inflation further in time.
It might be that you want to write the policy into a Trust, so it’s then paid out of your estate.
Please talk to the team so we can talk you through your life insurance options and ensure you get the best life cover for your circumstances.
Our role is always that of the advisor, we’re here to guide you and make recommendations.
A fee of up to 1% of the mortgage amount may be charged depending on your circumstances (ie. £1000 on a £100,000 mortgage). A typical fee is £495 plus we will receive commission from the lender.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Rose Capital Partners Ltd is an appointed representative of PRIMIS Mortgage Network, a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy-to-Let. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. Rose Capital Partners Ltd. Registration No. 08843654 registered in England and Wales. Registered Address, Leigh Saxton Green, Clearwater House, 4-7 Manchester Street, London W1U 3AE.