Mortgage Protection
Trusted insurance advice, tailored for you.
Mortgage Protection
Your mortgage is likely to be one of your household’s biggest expenditures and life insurance will help provide a financial safety net for your family if you die. Policies should be designed to pay out a lump sum to allow your family to pay off the mortgage after you’re gone. You may also wish to add Critical Illness to the plan so that the mortgage would be paid off if you were diagnosed with a Critical Illness.
There are two types of insurance to consider depending on the type of mortgage you have:
Level term insurance – This may be suitable if you have an interest-only mortgage as the sum assured remains the same throughout the term of the policy.
Decreasing term insurance – This may be suitable if you have a repayment mortgage, as the sum assured will reduce broadly in line with what you owe on your mortgage. Monthly premiums remain the same throughout the term of the policy and will be lower than level term premiums.
There are other factors to consider so please contact us and one of our advisers will talk you through it.
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Who's who?
There are three main parties concerned with a trust. These are as follows:
Usually referred to as the donor or settlor, the ‘plan-holder’ is the individual who has taken out an insurance policy to protect their family and friends should they pass away. It is their responsibility to allocate a trustee and nominate beneficiaries.
As a trustee, you have part ownership of the plan-holder’s policy and therefore have a certain amount of administrative rights. Whilst you cannot personally make any changes to the policy independent of the plan-holder, you may be asked to acknowledge changes they themselves have made. Additionally, it is your role as a trustee to ensure that the terms of the trust are carried out in accordance with the plan-holders wishes, once they have passed away. If you have already been appointed as a trustee and would like to know more about what your role entails, then we’d be happy to talk you through this. Call us today, on 0113 895 0030, where one our advisers will be available to take your call.
The persons who are, or may become, entitled to receive the plan proceeds are called the ‘beneficiaries’. A trustee can also be elected as a beneficiary and discretionary trusts enable changes to be made to beneficiaries if required at a later date.
The Financial Conduct Authority does not regulate taxation and trust advice.
