Life Insurance

Many people find life insurance difficult to discuss as this type of policy only pays out in the event of your death. Also known as life cover or death cover, life insurance is suitable for people who have children, partners or other family members who are dependent on them or who they would like to leave a legacy to.

Alexandra Bonnar
Alexandra Bonnar
21/11/2023
Ivan is excellent! Very helpful, dedicated to his work and goes the extra mile.
The Mabbutts
The Mabbutts
04/09/2023
Ivan has provided us with outstanding service. He has gone above and beyond what we expected. He helped us with our mortgage when moving house. We will be returning every time our mortgage is up for renewal.
Daniel Fardell
Daniel Fardell
10/05/2023
All round great service & results from Ivan. Extremely knowledgeable, very approachable & always has his clients best interests at heart.
Antonio Banderes
Antonio Banderes
26/04/2023
Great to work with, felt like we were thier top priority. Communication and availability 5/5
Lee Wigglesworth
Lee Wigglesworth
19/04/2023
I highly recommend Ivan at Elementary Mortgage Solutions. He was very helpful, always talking me through things I was unsure about putting my mind at ease. He helped me through a time length of 18 months and was always easy to get hold of and quick to reply if ever I needed him.
Dean Warsop
Dean Warsop
10/03/2023
My mortgage application went as smoothly as it could with the help of Ivan who went above and beyond with his time and efforts to get it sorted as soon as possible. Everything he did was explained in terms I could understand and he was never more than a phone call away to answer any questions we had. I couldn’t recommend Ivan highly enough and have passed his details to numerous friends. All I can add is my gratitude to Ivan for his hard work and being available every step of the way. A fantastic man and very good at what he does. Many thanks again
Robyn Kirk
Robyn Kirk
04/01/2023
We didn't have the easiest circumstances however ivan was very honest with us from the beginning. He outlined a number of options for us and when the time came for us to apply for a mortgage the process was easy and stress free due to ivan's brilliant communication and transparency. We couldn't thank ivan enough because he made it possible for us to get our first home.
Andrew Littlewood
Andrew Littlewood
03/01/2023
Brilliant advice and products from Ivan as always I won’t go anywhere else .
Steph Lonergan
Steph Lonergan
22/12/2022
Would highly recommend using Elementary Mortgage Solutions. Done amazing at finding us the best mortgage for our new home. Very helpful and always available if need to ask any questions, worth every penny.
Will Shaw
Will Shaw
20/12/2022
Ivan was absolutely amazing from start to finish. We had a few set backs on our side of things due a global pandemic and then several houses falling trough but he never gave up, he kept going for us and kept us updated regularly and we have now finally got the keys to our very first home just intime for Christmas. He made the whole process a breeze sorted all our insurance's out for us so we had the right cover at the right budget. Honestly 5 stars doesn't even come close wouldn't hesitate to recommend him and Elementary Mortgage Solutions to anyone.

Need advice on mortgage protection products? Contact our team today

What is Life Insurance?

Life insurance is a type of insurance policy that is designed to support your dependents in the event of your death. If you pass away or suffer from a terminal illness with a 12-month life expectancy or less during the length of the policy, it will pay out a tax-free cash lump sum or monthly income.

A life insurance policy provides comfort for the policyholder, as they know their dependents will be financially supported should they no longer be there to provide for them.

The amount of money that could be paid out will depend on the level of cover you purchase. Some types of life insurance will also let you pay out a regular monthly amount rather than a lump sum. These policies, called Family Income Benefit, can be used to pay recurring expenses such as mortgage or rent payments.

Types of Life Insurance

There are two main types of life insurance available.

Term Life Insurance

This type of policy runs for a fixed period of time, for example, 5, 10 or 25 years. A term life insurance policy will only pay out if the holder dies during the term of the policy.

If the policy term ends and the policyholder hasn’t passed away, then the insurance simply lapses. There is no end of policy payout.
Term life insurance policies come in three different forms;

Level term: A level term life insurance policy pays out a fixed sum should you pass away. The payout won’t change during the life of the policy.

Decreasing term: A decreasing term policy will payout a reducing amount over the term of the policy. This type of life insurance is generally taken out in line with a mortgage or other debts and can also be referred to as mortgage life insurance.

Increasing Term: Often also called ‘Index Linked’, the payout sum rises over the term of the policy. The increases may be an agreed amount each year or be linked to the retail price index. The benefit of this type of policy is that the payout maintains its real-world value throughout the term.

Whole of Life Insurance

Sometimes also known as life assurance policies as they payout no matter when you die. These policies have no fixed term and run for as long as you keep up the payments.

Do You Need Life Insurance?

As with all types of insurance, whether it is right for you depends on your own personal circumstances.

If you have children, a partner or other family members that rely on your income then a life insurance policy will provide for them after you’re gone.

If you have a mortgage, life insurance can often be used to pay this off, allowing your family to stay in their home.

Life insurance can also often be used to cover funeral expenses, removing the financial burden on your loved ones.

What’s Covered?

Life insurance policies should pay out when the policyholder dies.

Many policies will also cover against terminal illness, providing the life expectancy is under 12 months. You should check the terms and conditions of any policies you are considering to confirm if they provide this type of cover.

What Isn’t Covered?

If you become seriously ill or disabled but don’t have a terminal illness, then life insurance won’t payout. There are other types of insurance products such as Critical Illness Cover or Income Protection that cover these types of issues.

Death from drug or alcohol abuse is very unlikely to be covered, and if you take part in dangerous sports, or have a dangerous job, then you can expect to pay extra.

How Much Does Life Insurance Cost

Life insurance policies can be very reasonable, and cover may cost as little as £5 per month. There are a lot of providers, and so it pays to shop around to get the best deal.
When quoting you for life insurance, providers will take several factors into account. These will include;

  • Your age
  • Your health
  • Family history of serious illness
  • Lifestyle (e.g. Do you smoke, are you a heavy drinker)
  • The duration of the policy
  • The amount of money you want to be paid out should you die

If you are young, healthy and active, your policy will be cheaper than a middle-aged person who has smoked for 20 years.

Summary

Life insurance offers peace of mind that your loved ones will be financially supported should you die. It can be relatively cheap, but it always pays to read the terms and conditions to ensure that the policy you select meets your needs.

At Elementary Mortgage Solutions, we work with a broad panel of insurers. Our experts will assess your situation and suggest the most suitable policies for you based on your personal circumstances.

If you’d like to discuss life insurance or any other kind of insurance, please contact our team.