Buying a house this year? You might need this…
Buying a house can be a stressful experience (at times) but so rewarding too.
There’s so many firsts you'll experience when you get your first house; getting the keys, the first meal in your new place (that you end up eating on the floor because your furniture hasn’t arrived yet), decorating your space, having a housewarming party and so much more.
But sorting out your life insurance policy should be at the top of your to-do list when you’re buying a house and here’s why.
The biggest debt
The average UK house price in January 2023 was £258,297. So it’s safe to say that a mortgage is one of the biggest debts any of us will ever have in our lives.
Getting life insurance to protect your mortgage should be a no-brainer but sadly, many people aren’t aware of the value of having a life insurance policy for your mortgage.
What are the benefits of having a life insurance policy for your mortgage?
Put simply, the whole point of having a life insurance policy for your mortgage is so your loved ones would have some financial support to help them keep up with payments, if the worst were to happen to you.
If you were to pass away without a life insurance policy in place, then consider who would be left with the burden of paying off this huge debt?
No one knows what’s around the corner so being prepared for the worst case scenario is exactly what a mortgage protection policy can help you do. Along with peace of mind, this life insurance policy could make all the difference for your family, if the worst case scenario happened.
Different types of mortgages
Every mortgage is different and so is every life insurance policy. Let’s take a look at why there are a few different types of mortgage policies out there and what that means for you.
A decreasing policy is typically used to cover a repayment mortgage. The reason for this is simple, as the remaining balance of your mortgage reduces, the amount that you’re covered for will reduce over time, inline with the policy.
If you have an interest-only mortgage, then a level term life insurance policy could be the preferred type of cover for you, as the amount of cover that the policy can pay out throughout the term of the policy is fixed.
Can you combine mortgage insurance with another type of cover?
A mortgage life insurance policy can be combined with other types of life insurance in order to create a more comprehensive type of cover, resulting in you being financially protected against a range of different circumstances.
By combining a decreasing term life insurance policy with critical illness cover then you’ll be covered for both death and critical illness. A combined life insurance policy will typically only pay out once, so if you make a claim on one element of the policy, you will no longer be covered for the other part.
How to get life insurance for your mortgage
You’re in the right place! At Caspian, we help busy parents (and anyone else who needs our help) find the right cover to suit your unique circumstances and needs.
Our mortgage life insurance specialists will look at the type of mortgage you have, the remaining balance on your mortgage and other factors surrounding your health and lifestyle.
Once we have identified the right type of cover for your needs, the rest is simple. We search through the UK’s top insurers, comparing prices, until we find the best policy for you. We tailor your mortgage cover to suit you and when you’re happy, we’ll help set everything up for you.
Why Caspian?
With our help, we can save you time and money. When you become part of the Caspian family, our customer service team will be on hand throughout the duration of your policy to help with anything you may need us for.
Our in-house trust team is there to help you with your trust forms and if the worst ever happened, our dedicated claims team will be on hand to offer support and help during a tough time. To protect your loved ones with a life insurance policy, get started by clicking the button below.
