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Life Insurance for your Mortgage. Is it enough?

The death of a loved one is unimaginable. Coping with the emotions of a bereavement whilst trying to carry on with life can be very hard and challenging.

This is why people should have Life Insurance in place so that if a loved one passes away, the remaining partner or their family can have peace of mind knowing that the mortgage can be paid off and so try to reduce the financial burden and anxiety. But is it enough to have Life Insurance to pay off a mortgage? What if you leave a partner and children behind, for example? How does that change things?

Think about all of your household outgoings and commitments for a moment. For example, your mortgage has been paid off, but you have now lost one income. Does the remaining partner's income (if any) cover all the remaining outgoings? That's all your utilities, Broadband, Mobile phones, Council Tax, food, clothes, holidays, days out, Insurance, petrol, servicing, hobbies, loans, credit cards, car finance, etc.

If this is you, and you are wondering how you would manage this situation, you are not alone. Unfortunately, this catches many people out, and people sometimes see that the only solution is to sell the family home and downsize so that they can afford all the ongoing financial commitments. What are the implications of that, though? New schools for the kids, perhaps, having to make new friends, find additional work, and give up hobbies and holidays? The point is you are being forced to make decisions you would instead not have made. What if there was a solution which gave you options and choices? A solution which means that you can choose to stay in the family home as you can afford to or move to a new home because you want to, not have to.

One possible solution is a type of Life Insurance called Family Income Benefit. On the death of a loved one, a tax-free monthly income can be paid to the family so that they can continue to meet all the household outgoings. The payment can be set up so that it's delivered to you for several years, typically until the youngest child is no longer financially dependent on you.

A Family Income Benefit plan for a 30-year-old non-smoker with no underlying health conditions could insure themselves for 25 years with a £1500pm tax-free income for as little as 30 pence a day*.

*Quote sourced through Solution Builder. The quote is £ 9.19 pm on the basis described. Any Application for cover would be subject to assessment by the Insurance Provider, and the premium may vary from that quoted. Greenshoots Financial are an intermediary and will act on your behalf when providing advice and making our recommendation(s) to you. We will do this based on a fair and personal analysis of insurers for term assurance, income protection, critical illness building and contents, private medical insurance, accident sickness and unemployment.

How do find out more?

Contact our friendly brokers, who will discuss your situation and discuss the right options for you.

Call: 01506 537111


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