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insurance guide

If you’re taking out a mortgage, the chances are you’ll need to consider some form of insurance as the mortgage lender will potentially insist upon it.

So, like our simple to understand mortgage descriptions, we’ve listed the main types of insurance policies below:

Level Term Life Assurance

Basically pays out a set sum if you die whilst the policy is active. It’s referred to as level term as the amount remains the same throughout the life of the policy and doesn’t reduce. In the event of your death, a tax- free lump sum is paid and can be used by your dependants to clear any outstanding mortgage or spend however they choose.

Decreasing Term Life Assurance

Also pays out a lump sum in the event of your death but, as the title suggests, this amount decreases over the life of the policy – usually following the amount still left on a mortgage. These policies are generally taken out to complement a repayment mortgage so any lump sum amount paid is the same as the outstanding mortgage thus allowing your dependants to clear the debt.

Family Income Benefit

Is intended to pay your dependants a regular amount rather than a lump sum payment in the event of your death. It provides a regular, tax- free income until the end of the policy term.

Critical Illness

Policies pay out a tax-free lump sum if you develop a serious illness such as some forms of cancer, suffer a stroke or heart attack (plus many other illnesses depending on the policy). The money is paid once the diagnosis is confirmed and can be used however you wish. However these policies cover a specific list of illnesses and therefore the cheapest may not always offer you the cover you may eventually need.

Income Protection

Is designed to pay a monthly amount to replace a proportion of your salary if you are unable to work due to illness or an accident. The payments begin after an agreed period and will continue until the policy terms ends, you return to work or reach retirement age.

Building and Contents Insurance

Is probably the most widely recognised type of policy as all mortgage companies will insist you have buildings insurance in place to protect their investment. This type of policy will pay out to repair the bricks and mortar or rebuilding costs of your home should it be damaged by fire, structural problems or natural events. Contents insurance protects your possessions in and out of the home. It usually covers loss, damage or theft of furniture, appliances or personal belongings and is not compulsory.

 

Hopefully you’re now more familiar with the most common insurance types, so relax knowing that through our panel of trusted insurance providers, we will advise and source the best option to meet your current and future needs leaving your confident that your home and family are well protected.

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We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.


Miss Knight

2016-03-22T17:24:36+00:00

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure... Read the full article

Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

2016-09-13T12:38:09+00:00
Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

2016-09-13T12:43:22+00:00
Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

2016-09-13T12:48:10+00:00
Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

2016-09-13T12:49:06+00:00
Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with... Read the full article

4 weeks ago

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