This depends on the type of insurance you’ve taken out. For example if you are covering your mortgage then the amount will decrease in line with the amount with the loan. The monthly premium you pay will be the same each month.
If you have opted for RPI your premium and amount paid out will be in line with this each year. Please note that some insurers will only offer this for the first few years and if you decline it each year, it will no longer be available for you.
Sometimes these types of policies are not that much more expensive than having one joint policy. If you both pass away it would mean that your beneficiaries would have more of a payout.
A joint policy would end as soon as one of you die and if you had two separate policies and one of you are still alive it will continue until the end of the policy or on death.
It is important to note that everyone’s financial situation is different and it may be that these are is more suited to your circumstances and budget.
Both these refer to serious medical conditions. The difference is that a critical illness gears to a specified serious injury, illness or medical episode, and terminal illness means your hospital consultant expects the illness will lead to death within the next 12 months.
No, they are both the same thing using different terms.
Some countries are listed as areas of concern e.g. you would need certain medical tests if you have spent a considerable amount of time there or it could be an area of conflict which would mean cover would not be available to you if you travel there due to the dangers.
All insurers have a different underwriting criteria and as part of our service, we will assess and look to obtain the right insurer for your requirement.
The question to ask yourself is – do your loved ones rely on you financially? If the answer is yes, then it’s worth getting life insurance so they can live without financial struggles when you die.
Your existing lender may agree to allow you to port your existing mortgage product to a new property.
When you sell your existing home and are looking at buying a new one, you will still need to apply for a new mortgage. This is because the loan itself does not transfer over to a new property, only the interest rate and the terms and conditions of your current product transfers over to the new property.
You will still need to go through the lenders affordability assessments, valuations, and legal processes for the new purchase, but by porting the existing product, you would not have to pay any penalties for redeeming the mortgage on your existing property early.
As part of the moving process, your existing mortgage is paid off in full and a new mortgage is taken out against the new property. Porting will allow you to remain with the same lender, keep your current product and apply for any additional ‘top up’ loan needed to complete the purchase of your new home.
A ‘top up’ loan is usually an additional borrowing amount above and beyond the amount to be ported and will sit as a separate mortgage part on a different product from the lenders current offering. This scenario is more common, when the new property is more expensive than the current property and requires a mortgage higher than the amount to be ported. Availability of any additional top up borrowing will depend on your lenders affordability criteria and your personal income/circumstances at the time.
Lenders use a range of different credit agencies when they assess at your credit if further detail. You can download your credit file using Checkmyfile (link below) which offers a multi credit agency report in one..
You do not need to take out life cover to pay your mortgage, but if something happens to you, can your family continue to keep up the monthly payments? Do they have the savings to repay the debt in full?
These are some of the questions that you need to ask yourself before you make a final decision on whether to take out cover or not!
It's tough deciding how much cover you should have and depends on your individual circumstances, lifestyle, expenditure and financial commitments.
One of the main factors is also how much can you afford to pay in monthly premiums.