Life insurance is a protection product that will pay out a lump sum to your chosen beneficiaries, free from income and Capital Gains tax, in the event of your death. The money can be used to pay off remaining mortgage debt, to subsidise living costs, funeral expenses or other debts.
Benefits of life insurance
Paying outstanding mortgage balance:
Your life insurance pay-out could cover the entire outstanding mortgage balance on your home. So, your loved ones won’t have to worry about losing the property. Even if the pay-out does not cover the entire outstanding mortgage balance, life insurance will alleviate financial pressure and stress.
Financial security
Life insurance can provide vital financial support during a time of grief and distress for your loved ones. This may be through supporting your children’s education, daily living costs or simply maintaining your family’s lifestyle.
Peace of mind:
Knowing that your family won’t face financial hardship if something happens to you can bring invaluable peace of mind.
Flexible options:
Life insurance policies can be tailored to suite your budget and needs. You can choose from a ‘term’ or ‘whole life’ policy. ‘Term’ life insurance policies will only pay out if you pass away within the policy’s term. A ‘whole life’ policy pays out as long as you continue making payments towards the policy.
Why mortgage holders should opt for life insurance
Life insurance is not a requirement for taking out a mortgage. However, a mortgage is often the largest financial commitment you’ll make. This could leave significant debt for your loved ones in the event of your passing. Life insurance helps protect them from this risk, removing associated financial pressure.
We recommend having a life insurance policy in place when taking out a mortgage. This is particularly important if you are taking out your mortgage with a partner or have dependents. Your mortgage deal will have been offered based on two salaries. If one of these salaries is no longer there, life insurance will help to cover the lost income in relation to your mortgage.
How Bell Mortgage Solutions can help
Contact us to speak to a member of our team, and begin exploring your options. We will discuss your requirements with you and find the right policy for you that best suits your needs. Protect your home and your family, whilst securing your peace of mind, today.
Read the answers to our frequently asked questions about life insurance, here.
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