Life Insurance & Protection
How would your family manage financially without you should the worst happen? Life insurance can ensure that your family maintains their lifestyle even if you and your income are lost.
Most people will do everything they can to secure their dream home, but few think about how they could keep it if circumstances changed. Life insurance is just one step to securing your family’s future.
While life insurance isn’t compulsory for a mortgage, hundreds of families across the UK have insufficient cover. In the event of your death, your family could be left not only without you, but without your income and the financial stability which that brings. A life insurance policy can ensure that, should the worst happen, your family receives payment to maintain their lifestyle, contributing to bills, mortgage payments and other debts, or any other financial aspects of your life.
Most life insurance policies will provide a tax-free lump sum to your dependents in the event of your death, which can then be used by your dependents however they so choose. Throughout the term of your policy, you will pay a monthly premium that will vary depending on the type of life insurance cover or policy that you choose. Our advisors will always be happy to go through any insurance policy with you, and will accompany you through the application process to ensure all of the information is correct, and that you understand the level of cover that you will be receiving.
We collectively have over 100 years of experience in arranging mortgage policies and products, so why not find out a little more about us and how we could help you protect your home and family.Find out more about our team
Income protection insurance is only one way to protect you and your family should the worst happen. Our insurance guide can provide more information on how to make sure you’re suitably protected.Read our Protection guide
If you’d like to invest in life insurance, find out more information, or if you’re just considering your options for the future, please get in touch today. Our services are always free.Get in touch
“Thanks for all your hard work. It really was a big help not having to worry about the mortgage and all the insurances. You're a star!”Louise & Stuart
“Thanks Michelle and DMS for once again finding us the best mortgage deal to suit our needs. Patient, knowledgeable and competent. I would highly recommend and have done on many occasions.”Sam
“Thank you so much for all your help and support. Everyone has said that house buying is stressful but being first time buyers we didn't know what to expect. You have really helped us by explaining everything in a straightforward way and answering the many questions that we had! We got there in the end and we are very excited! Derbyshire Mortgage Services are now highly recommended by us.”Kelly & Gareth
For life insurance policies that provide a lump sum of money to your dependents in the event of your death, policies typically fall into two main types of insurance cover – level term insurance or decreasing term insurance:
- Level Term Insurance – within such a policy, the amount of cover (or ‘sum assured’) will be fixed at the same level throughout the policy term. At the beginning of the policy you will set out the sum assured and the policy term. Most people take out this type of life insurance policy to help pay off a mortgage, and it is especially useful for interest-only mortgages since the outstanding capital will not decrease over time.
- Decreasing Term Insurance – in this type of policy, the cash lump sum that will be paid out in the event of your death will decrease over time. As a result, these policies are best suited to repayment mortgages, where the outstanding capital also decreases over time, and the policy can be arranged to ensure that the sum to be paid out is in line with your outstanding mortgage. This decreasing cover also means you are likely to pay cheaper premiums.
It is possible, however, to arrange life insurance policies that don’t pay out in a lump sum, but rather pay out as a regular tax free income. These policies are known as family income benefit, and are typically best suited to families supporting children. In this type of policy, in the event of your death, your dependents will receive a regular tax free income that can be used to meet everyday expenses, contribute to mortgage and other debt payments, or be used to help invest in your family’s future.
Family income benefit policies are less expensive than you might think, especially if you take out such a policy while you are younger. The policy can be customised to fit your own family circumstances, and one of our expert advisors can help ensure that your family has the right amount of cover for their situation should the worst happen. Our priority is to make sure that you have the peace of mind that your family will be supported should they lose you and your income.
Life Insurance Help!
Do you have questions about life insurance and protection? You might find the answer here or in our Protection Guide. If you have further queries, however, please call us for free.
If I have a mortgage, should I have life insurance and protection?
Life insurance isn’t compulsory for a mortgage, but you need to consider just how your family will be able to make mortgage payments in the event of your death.
If your family can’t make the mortgage repayments, your mortgage lender may repossess your home. At an already emotional and difficult time, this could be devastating for your loved ones.
Can I get life insurance and protection if I don’t have a mortgage?
Yes! Your mortgage is just one of many things in your life that needs protecting. In the event of your death, the sum paid out by a life insurance policy can allow all aspects of your family’s lifestyle to continue, even though you and your income have been lost.
Do I need other insurance?
You will always require buildings insurance as a condition of your mortgage lender, but the amount of contents or additional life cover you choose to invest in is completely your decision.
The amount of protection you invest in should depend on your budget and circumstances. For example, if you are a single person who rents a property, your insurance needs will differ greatly to a family with a mortgage. If you are unsure of the level of protection you need, or want to learn more about different types of protection, feel free to call us for free, or take a look at our Protection Guide.
I’ve had medical problems in the past – will that mean I can’t get life insurance and protection?
Previous medical problems can impact the types of cover you can get and at what cost, but it might still be possible for you to get cover, depending on your circumstances. If you are unsure whether you will be able to get life insurance or income protection, please contact one of our expert advisors – they will be able to help assess your situation and let you know what’s available.
When should my cover start?
It’s never a good idea to delay any form of protection. It’s always best to get your cover in place as quickly as possible as you never know what might happen in the future.
Some forms of life insurance and income protection might also take a little more time to put in place than insurance for your home or contents, so it’s best to prepare sooner rather than later.
How do I apply for life insurance and protection?
We believe all aspects of mortgages and protection should be as stress and hassle free as possible. We will help you find the right cover for your circumstances and complete the application process for you. Our services are also always free, so we will never charge you for the help we provide.
What is the difference between life insurance and critical illness?
Both life insurance and critical illness policies will provide a tax free lump sum, but a life insurance policy will only pay out in the event of your death. A critical illness policy will instead pay out once you are diagnosed with a critical illness (subject to the insurer’s criteria).
In both cases, the money can be used as you like – for bills and mortgage payments, medical care, paying off other debts, or just to replace a lost income. For more information on both life insurance and critical illness, take a look at our Protection Guide, visit our critical illness webpage, or contact us for free.
If I want to cancel my current life insurance policy and replace it with a cheaper one, will I have to pay an extra fee?
Most term assurance policies will not impose penalties for cancellation, but you should always check the terms of your insurance policy. If you are looking to change your life insurance policy, ensure that the quality of the cover you receive isn’t reduced. If you would like more advice on changing your life insurance policy, one of our expert advisors will be happy to speak with you. Just get in touch – it’s always free.
What information do I need to apply for life insurance?
When applying for any level of protection insurance you will need certain documents and details available, including your medical history and existing policy information. For a list of required information, take a look at our Protection Guide. If you have any questions, please don’t hesitate to get in touch with one of our advisors for free.
We care as much about your home as you do
Let us help you find a mortgage that’s tailored to your life.