Life Insurance
Having the right cover in place will give you peace of mind that your family will be provided for should the worst happen to you.
What is Life Insurance?
Life insurance is a way of making sure your loved ones are financially supported when you die. You pay a monthly amount to an insurance company and if you should die unexpectedly then your loved ones receive either a lump sum or a regular payment.
Do I need Life Insurance?
If you have financial commitments and people are financially dependent on you, then it is sensible to have some sort of cover in place should the worst happen. By talking to a financial adviser about your unique circumstances, we can advise whether life insurance is necessary.
How we can help
The life insurance market can seem overwhelming with lots of terminology and many options to consider.
At Downton Mortgages & Financial Services, we take the time to understand your unique circumstances, research the life insurance market and answer any questions you might have. Once you are happy with your choice of provider, we will manage the whole application on your behalf.
“We felt in good hands from the first meeting” (Feb ’23)
How does it work?
Life insurance is one of the more complex types of personal insurance because there are many different policy types. More commonly you will pay your chosen insurance company (either monthly or in one lump sum) and be insured for a specific term (e.g. 20 years) though it is also possible to take out insurance that covers you for the rest of your life (i.e. without a specified term).
Frequently asked questions
What is the main reason I would need life insurance?
Taking out a mortgage is a large financial commitment and one you wouldn’t want your family to worry about if you passed away. As a result, the main reason people take out life insurance is to cover a debt, like a mortgage.
Is the pay out from life insurance taxable?
The pay out your family would receive from your life insurance is tax-free and can be paid out as a lump sum or in regular payments.
Is it worth getting life insurance when I’m young?
Taking out a life insurance policy when you are younger will typically mean that your monthly payments to the insurance company are lower, but depending on your individual circumstances that may not always be the case. This is such a common question that we’ve written a blog about it called Do I need life insurance when I’m young and healthy?
Do I need life insurance to get a mortgage?
No, mortgage lenders tend not to stipulate that you need life insurance to borrow. Depending on your circumstances though it can be sensible to take out life insurance once you take on the responsibility of monthly mortgage payments.
Do I need life insurance if my employer offers death in service benefits?
A death in service benefit is where your employer pays a lump sum if you die while you are still employed with them, so it does offer you a degree of cover without you needing to pay monthly payments. It is worth looking into the details of the specific package offered by your employer to ensure it covers your financial responsibilities. Also consider that once you leave that employer you will no longer have any cover and setting up a new policy may be expensive depending on your age or risk. These are all things that we can talk through with you to determine if you need life insurance.
Can I get joint life insurance with a partner?
Yes, it is possible to get a joint life insurance policy with your partner (whether married or not). You get the benefit of cheaper monthly payments, and one application process but it’s worth bearing in mind that the policy will only pay out once – i.e. if one person dies unexpectedly, the surviving partner would no longer be covered.
You may have many more questions about life insurance that aren’t covered here. If you want to speak to a friendly and knowledgeable financial adviser in more detail, then get in touch to arrange a no obligation call to discuss your individual circumstances.
Get in touch
We’re here to help with any questions you might have about our services. Send us an email, pick up the phone or fill out our contact form. We look forward to hearing from you.
Personal information will be treated as confidential by us and held in accordance with GDPR May 2018 requirements. You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.