Life Cover For Mortgage - How Much Does Life Insurance Cost?
What is Life Insurance?
Life cover insurance for a mortgage is essentially a life insurance that helps to pay off your mortgage if you die before fully paying off your balance.
It is commonly bought as a ‘decreasing term’ life insurance policy. This means that as you your mortgage balance reduces, your insurance pay-out decreases in line. Its sole purpose is to pay off the remaining balance left on your mortgage debt should you pass away, therefore it will pay out less as time passes.
Life Insurance can be taken on a ‘level-term’ basis, where it provides a one-off lump sum payment which can be used to clear debts such as; a mortgage, car finance, loans, and more. You set the amount of cover.
The amount of cover doesn’t have to be directly linked to your mortgage and other credit, you can cover yourself and your partner for more. This ensures an excess to replace the loss of an income and provide funds to live off and support loved ones, during a difficult time.
How Much Does Life Insurance Cost?
The cost of life insurance depends on a number of factors including:
Your age
As we get older we are more prone to falling ill which means you are a bigger risk to insurance providers – this is why it is better to take out cover TODAY as you will never be as young. Premiums are often fixed in place for the life of your mortgage, although you can cancel at any point.
Your occupation
Certain job will carry a higher risk rating, meaning you’ll have higher premiums if you work in a sector that pose a threat to your health - off-shore being an example.
Your lifestyle
Lifestyle factors including whether you are a smoker, or have a higher BMI, may affect your premiums
Your general health
Any pre-existing health issues must be declared, so a provider can properly assess you. Failing to do so could see a claim rejected.
Cover term
Try to ensure that the term of your insurance policy is the same or similar to the remaining term of your mortgage. This isn’t essential, although the longer the term, the more expensive.
The reality is, having some form of life cover in place is the most selfless thing we can do. It’s accepting we aren’t invincible and truly putting others before ourselves.
For insurance business, we offer products from a choice of insurers, meaning we can recommend a package that’s suited to you. Our expert Mortgage and Protection Advisors offer fee free advice for all protection advice. Whether looking for the cheapest life insurance, or wanting to find an illness package to protect your family and lifestyle. Call one of our team based in Newcastle Upon Tyne, for mortgage protection advice.