We will search the whole of
the market for the most appropriate scheme for you. With over
7000 schemes and 400 lenders all offering different details
this is a very daunting, if not impossible task to be
attempted on your own! We will do this for you without
Most lenders will
strongly recommend or make it a condition of offer to have
life cover in place to AT LEAST protect the value of your
mortgage and other outstanding loans/debts. The most common
and usually cheapest forms are called Term Assurance.
Level Term Assurance (LTA) – the amount of cover stays the
same throughout the time you have the policy and pay the
premiums (usually monthly or annually). You would generally
use this for an interest only mortgage ie. the debt is not
Decreasing Term Assurance (DTA) – the amount of cover
reduces in line with your mortgage balance, if you have a
repayment mortgage and is usually slightly cheaper than LTA.
Depending on your circumstances there may be other life
assurance plans that are more appropriate for your
Critical Illness Cover
This will pay
out a lump sum ( or an income in some instances) on the
diagnosis of a life threatening illness or disease. Most
insurers have a long list of illnesses and this type of cover
is becoming more and more popular. It can be taken as a
separate plan to your life assurance or can be included within
the life plan to try and reduce the overall cost. It therefore
can be a level amount of cover (as LTA) or a reducing amount
This cover provides
with an income on illness and/or sickness. It can be until
retirement (Permanent Health Insurance) or for a limited,
specified period of cover, usually connected with your
The level of benefits can be basic, to pay your mortgage
only and/or other associated mortgage costs or more complex
with built in cover chosen by you.
The more you build into a plan, generally the more
expensive it will be. This type of cover may be called
Accident,Sickness & Unemployment (ASU), Mortgage
Protection, Permanent Health Insurance (PHI) or Income
Protection Plan (IPP).
This is a
compulsory insurance in ALL cases. The premium is based on the
rebuild cost of the property, which stated by the valuer and
appears on the valuation report and, normally, the mortgage
offer. The Postal Code area also influences the premium.
Accidental cover can be included.
Not compulsory but
strongly recommended. The premium is based on the level of
cover required and detail of the application (ie. are you
including specific high value items) and the Postal Code of
the property that you require cover for. Accidental cover can
be included. It is important to estimate the true value of
cover needed as under insurance can lead to a limited payout
by the insurer!!