Life Assurance

What is Life Assurance

Life assurance is a policy that will pay out a lump sum if the policyholder dies during the term of the policy and is designed to ensure the policyholder’s dependents receive financial support should the worst happen.

This money is usually used to fund expensive funeral bills, clear mortgage, loan & credit card debts and to ensure whoever you choose to look after your dependents has the money to do so.

Foundation Mortgages advise on all types of life assurance whether it’s protecting your property, income or loved one’s.

Types of Life Insurance

Type of life cover

Description of cover
  • Level Term      
The same level of cover is maintained throughout the policy term. This type of cover can be used   in  conjunction with an interest only mortgage.
  • Decreasing Term  Assurance
 The policy pays out an amount (sum assured) which reduces throughout the term of the plan and is mainly used to protect repayment mortgages.
  • Convertible Term  Assurance
 The sum assured stays the same for the term of the policy. However, for an additional cost you will have an option to convert this original plan, or part of it, to another type of policy.
  • Family Income Benefit
 Family Income Benefit (FIB) provides a tax free regular income which is paid out for the remaining term of the policy if you die. FIB can provide a replacement income and may be index-linked to inflation.
  • Death in Service Benefit
 Death in service benefit is often provided by employers through   company pension schemes. It will pay out if you die whilst you are employed.   This benefit may be lost however should you change employers.

These plans have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse. .

Talk to Foundation Mortgages today for all your protection needs where we offer fair and impartial advice to find the most suitable cover to meet your circumstances. Give us a call now on 01234 856991 to discuss all your protection needs, or by using the form below with a convenient day and time for us to contact you.

 

 

Simply visit our contact page and we will call you to discuss your mortgage and or protection requirements.

The levels and bases of taxation and UK interest rates are subject to change.

The guidance contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. Principal: Peter Martin Dronfield.