Life Cover

We can’t predict the future – which makes it all the more important we’re prepared for whatever life may throw at us. Life insurance (also known as ‘life assurance’) can be used to cover a mortgage, or other loan, or to support your dependants in the event that the worst happens to you, giving you peace of mind that they’ll be financially protected when you’re gone.

White Mortgages offer the following types of life insurance:

  • Level Term cover and;
  • Decreasing Term cover and;
  • Family Income Benefit(s).

Level Term cover

Taking out level term cover can insure you in a straightforward way. Basically, you make a monthly payment, which is normally guaranteed, and your dependants / beneficiaries receive a lump sum payout if you die whilst your policy is in force. You decide on the term of the cover, i.e. the number of years you want to arrange cover over, and the amount of cover you require, i.e. the size of the lump sum. These decisions will affect your monthly premium. Generally, the more cover you require and the longer the term, the higher the monthly premium. Premiums can also be paid annually.

Decreasing Term cover

Decreasing term cover, sometimes referred to as ‘mortgage term insurance’, is designed to give your dependants / beneficiaries a payout that’s specifically calculated to help them pay off your repayment mortgage in the event of your death. Over time, as you make your mortgage repayments, the amount you owe on your mortgage will gradually decrease – so your dependants / beneficiaries shouldn’t need as much money to pay off the remaining mortgage. Because of this, the premiums can be lower than those on policies providing level term cover, as above.

Family Income Benefit

A Family Income Benefit protection policy is designed to payout a regular monthly income, rather than a lump sum, in the event you die whilst your policy is in force. The income continues until the expiry of the policy’s term – benefits cease thereafter. This type of cover is popular with parents wishing to protect their family against the financial implications of their death, to cover the cost of school / university fees and to cover childcare costs.

Did you know?

  • More than half a million people die in the UK every year.
  • Every six minutes someone dies of a heart attack in the UK.
  • Stroke causes more than 43,000 deaths in the UK each year.
  • Heart and circulatory disease is the UK’s biggest killer – 570 people die from it every day.
  • About 12,000 people die every year in an accident.
  • In 2009, 2084 people died in transport accidents alone.