Our simple 3 step process
Our goal is to help you make a better future through smart financial decisions.
Is life insurance a wise decision?
With life insurance, your mortgage is paid if the worst happens. We’ll help you work out which option is best for you and your budget. Your life insurance might cover:
- Sudden death by natural causes
- Murder
- Manslaughter or accidental death
- Suicide – with some premium policies
If the policyholder’s death is said to be a result of putting themselves at obvious risk, the policy is unlikely to be paid. We’ll explain all this and more.
Great deals on mortgage and life insurance
We’re here to match the right life insurance to your priorities and budget. There are two types of life insurance:
With this option, you’ll get a fixed sum agreed with your insurance provider if you die.
You’ll get an amount depreciating until your policy ends. This covers your mortgage repayment, which will also decrease over the years. It’s the cheaper option as the payout gradually reduces.
What is Life Insurance?
Life insurance provides a lump sum payment to your loved ones if you pass away during the policy term, helping them cover essential expenses such as funeral costs, outstanding debts, daily living expenses, and future financial needs like education or mortgage payments. Life insurance ensures that your family will have financial support, even when you’re no longer around to provide it. Whether you’re starting a family, buying a home, or planning for the future, life insurance offers peace of mind by protecting those who depend on you financially.
How Does Life Insurance Work?
When you take out a life insurance policy, you agree to pay a monthly or annual premium to the insurer. You’ll choose the length of the policy, the amount of cover, and the type of life insurance that suits your needs. Information about your health and lifestyle is also required, as these factors help the insurer assess the level of risk.
If a claim is made and approved, the insurer pays the agreed sum to the named beneficiaries. They can use this money however they choose, from covering household bills to paying off debts or simply maintaining their standard of living during a difficult time.
What Our Life Insurance Covers
At Mortgage Matters, we understand that life insurance is a crucial part of protecting your family’s future. As your advisor, we work to find a flexible, affordable policy tailored to your unique needs and circumstances. Our life insurance options can cover:
- Mortgage repayments. This ensures your family can keep the home you’ve worked hard to secure.
- Income replacement. Providing financial support to maintain your family’s lifestyle if you’re no longer there.
- Children’s education. Supporting school and university fees, securing your children’s future.
- Outstanding debts. Covering credit card balances, personal loans, and other liabilities to protect your family from financial strain.
We also offer critical illness cover, which provides a payout if you’re diagnosed with a serious health condition. This can help cover medical expenses, living costs, or any adjustments you may need during recovery. At Mortgage Matters, we’ll provide expert advice and guidance to help you create a life insurance plan that truly fits your circumstances.
What Are the Benefits of Life Insurance?
There are many reasons to invest in life insurance - not only to protect your family’s financial well-being but also to give you peace of mind.
- Financial security for loved ones. The main benefit of life insurance is the financial safety net it provides to your family if the unexpected happens.
- Cover for debts and living costs. The payout can help clear your mortgage, pay ongoing bills, or fund childcare and education.
- Peace of mind. Knowing your dependents won’t be financially vulnerable can reduce stress and help you plan confidently for the future.
- Customisable cover. Choose the amount, length, and type of cover that best fits your situation.
- Affordable options. Life insurance can be surprisingly affordable, especially if you take out a policy whilst you’re younger and in good health.
Do I Need Life Insurance?
Whether or not you need life insurance depends on your personal circumstances. If you have people who depend on your income, such as a spouse, children, or other family members, life insurance is worth considering. You might benefit from life insurance if you own a home with a mortgage, have young children, support a partner financially, want to leave an inheritance or cover funeral costs, or have personal or business debts that someone else may inherit. Even if you don’t have dependents right now, securing a policy whilst you’re young and healthy can save you money in the long term.
What Types of Life Insurance Are There?
There are several types of life insurance, each designed to meet different needs. Understanding the options can help you choose the right policy.
Term Life Insurance
Term life insurance provides coverage for a fixed period, normally 10, 20, or 30 years. If you pass away during this term, the policy pays out a lump sum to your beneficiaries. If you outlive the term, the coverage ends with no payout.
There are different variations of term life insurance:
- Level term. The payout amount remains constant throughout the policy term, making it easier to plan your finances.
- Decreasing term. The payout reduces over time, often aligned with a repayment mortgage balance, so the benefit decreases as your debt reduces.
- Increasing term. The payout increases each year to keep up with inflation, helping maintain the value of the payout over time.
Joint Life Insurance
Joint life insurance covers two people, usually partners or spouses, under a single policy. It usually pays out a lump sum on the first death, after which the policy ends. This can be a cost-effective way for couples to secure financial protection for their family.
FAQs for Life Insurance
Life insurance normally covers death by any cause (excluding suicide within the first year of most policies). The payout can be used by your beneficiaries however they choose, from covering living expenses to paying off debts or funding education. Critical illness or terminal illness cover can provide extra financial support if you’re diagnosed with certain health conditions.
The length of your life insurance policy should depend on your goals. If you want to cover a mortgage, choose a policy that lasts until it’s fully paid off. For young families, a term lasting until your children are financially independent is common. At Mortgage Matters, we can help you match the term to your financial responsibilities.
The earlier, the better. Premiums tend to be lower when you’re younger and in good health, making it sensible to lock in a policy early. Taking out cover in your 20s or 30s can result in significantly lower monthly payments compared to waiting until later in life, when health conditions are more likely to arise.
Once a valid claim is submitted with all the required documentation, most life insurance pay-outs are made within 30 days. In some cases, it can take longer, particularly if the insurer needs to investigate the circumstances of the death, verify policy details, or request additional medical records.
Leading the way in insurance
As well as mortgages, we also provide great insurance services through our 5* Defaqto rated home insurance provider.
