Life insurance
Life insurance advice
Life insurance pays out if you die during the policy term. It can help the people who depend on you with a mortgage, living costs or other commitments.
Advice by Charlene McGuire, mortgage and protection adviser with 25 years' experience, based in North Lanarkshire.
Protection policies have terms, conditions and exclusions. Cover depends on the information you give the insurer being accurate and complete.
Choosing the cover
- Level cover pays a fixed amount.
- Decreasing cover reduces over time, often alongside a repayment mortgage.
- Single or joint policies, depending on your household.
Things to consider
Insurers ask about your health, lifestyle and occupation. Answering fully and accurately is important, as incorrect information can affect a claim. Policies have no cash value if you stop paying.
When to review
Consider a review when you move home, take on a larger mortgage, have children or your circumstances change.
Life insurance alongside your mortgage
Decreasing term cover is often matched to a repayment mortgage, as the amount covered reduces over time like the debt. Level term cover stays the same and can also leave money for your family. Writing a policy in trust can help the payout reach the right people quickly.
Local life insurance advice
Charlene is based in Muirhead and Chryston in North Lanarkshire and advises clients across Moodiesburn, Gartcosh, Glenboig, Stepps, Cumbernauld, Coatbridge, Airdrie, Glasgow and surrounding areas. Appointments can be face to face locally, or by phone or video if that suits you better.
Common questions
How much life insurance do I need?
It depends on your mortgage, debts, dependants and existing cover such as employer benefits. Charlene can help you work through it.
What is the difference between level and decreasing term life insurance?
Level term pays the same amount whenever a valid claim is made during the policy. Decreasing term pays out less as the term goes on, and is often used to cover a repayment mortgage.
Do I need life insurance to get a mortgage?
No. Lenders don't require it, but many people arrange cover at the same time as their mortgage so the loan could be repaid if they died. Whether it's right for you depends on your dependants, savings and any benefits you already have.
Should I write my life insurance in trust?
A trust can help a payout go directly to the right people without waiting for probate, and in some cases keep it out of your estate for inheritance tax. Trusts aren't right for everyone, so it's worth discussing when the policy is set up.
What's the difference between single and joint life insurance?
A single policy covers one person. A joint policy covers two people but usually pays out once, on the first claim, after which cover ends. Some couples prefer two single policies so each keeps cover, though that usually costs more.
Related advice
Ready to talk it through?
Send an enquiry and Charlene will get in touch to understand your plans and explain what the next steps could look like.