When applying for a mortgage, it seems like there are endless boxes to check. One popular belief is that life insurance is a must-have when applying for a mortgage.
Although you don’t legally need life insurance for a mortgage - it does provide your family with financial security. Here’s some myth-busting around life insurance policies and mortgages.
Firstly, what is Life Insurance?
In the event of death or a terminal illness diagnosis (any diagnosis with 12 months or less to live), a life insurance policy will pay out. Having life insurance gives your family financial security if any tragic accident or illnesses were to happen.
Do I need life insurance to apply for a mortgage?
Next - it’s important to remember that it’s not compulsory to have life insurance to apply for a mortgage, it’s a recommended product. However, it does give you peace of mind, and protect your family if the worst should happen.
As the saying goes - “You would rather have it and not use it, then need it and not have it.”.
When you’re setting up life insurance, there are two kinds of policy.
First - a Single Policy. Think of this as individual insurance.
Next - Joint Basis Policy. This is insurance for one sum and paid out on the first death basis.
How does critical illness cover work?
Critical illness is slightly different from life insurance. Life insurance includes terminal illness when an illness is life-threatening. However, a critical illness is life-changing.
After being diagnosed with a critical illness, you will be paid a lump sum. Depending on the severity level of the diagnosis, you will receive additional sums.
When an adult has critical illness cover, your children are covered too - up to the age of 21.
How can Affinity Help?
When you’re applying for either life insurance or critical illness cover, we can help with expert, tailored advice. Including reviewing your current policies, to check it’s still the right one for your situation.
Being an independent broker, we don’t have ties to any particular insurer, so any advice is unbiased and honest. Then, we save you time and effort by liaising with underwriters to get the best deal.
Now using Affinity Online, reaching out is easy. With a few clicks, get in touch with our specialist brokers who will guide you through the whole process. Plus - we’re fee-free! So advice might save you thousands, but it won’t cost you a penny.
Get in touch today: https://bit.ly/3i0fWia