Life Insurance

Life Assurance Online

Life Assurance Online is a site designed to help British Expats obtain a cheap quote for Life Insurance, Critical Illness Insurance, International Medical Insurance, Income Protection Insurance and other insurance products. All requests and information you provide through this site will be dealt with by Face to Face Finance (Anglia) Ltd which is regulated by the Financial Conduct Authority and recorded in the Register under no 439288. They are able to research the whole British Expats life insurance market on your behalf.

This site is intended for British Expats and those intending to become British Expats.

Life Assurance Online Services
Mortgage Life Assurance Guide

If you require further clarification on any of the following or need advice on your particular circumstances please click here Advice.

Some lenders insist on life assurance to protect a mortgage and many do not. Often this will depend on the type of loan taken out and the policy of the lender.

However, if you are married, have a family or financial dependants you should consider protecting the loan even if the lender does not insist on it. Otherwise you may leave your family and dependants at a financial risk.

The cost of covering this risk through a life assurance policy is normally small assuming you are in good health.

Repayment Mortgage Protection

A repayment mortgage pays off the outstanding capital as well as servicing the interest on the loan. The effect being that as time goes by the mortgage amount outstanding decreases and at the end of the term the mortgage is fully paid.

Decreasing Term Assurance

Normally the type of life assurance required to cover this mortgage is decreasing term assurance rather than level term assurance or more commonly referred to as mortgage protection assurance.

The policy is set up to provide a level of cover to meet the original loan, which, as time goes by decreases as the mortgage is paid off. On the redemption date of the loan the policy comes to an end, normally without value.

Level Term Assurance

A level term assurance policy can also be suitable for mortgage protection. The sum assured will remain at the same level throughout the period of the loan and in the event of a claim the proceeds paid out would normally exceed the mortgage liability.

This additional cover could provide additional funds for family protection. The policy may also prove valuable if you subsequently change your mortgage to an interest only arrangement, particularly if health has deteriorated in the meantime. The difference in cost between the two types of policies is normally small.

Interest Only Mortgage Protection

Where a mortgage is set up as an interest only arrangement the capital borrowed remains outstanding throughout the period of the loan. An investment is normally taken out to provide the capital to repay the mortgage when due.

The investment plan could be a personal pension, existing PEP/Individual Savings Account or endowment. With this type of arrangement, level term assurance is used to ensure that the liability is covered in full throughout the period of the loan.

Critical Illness Protection

Life assurance protects against premature death, but what if you survive a critical illness such as a heart attack, cancer, stroke or other life threatening disease? Often the patient is unable to work and could be partially or totally disabled.

To cover the financial consequences of this risk a critical illness policy would be used. In most cases this pays out a lump sum to provide funds for repayment of the mortgage. A claim cannot be normally made until the patient has survived a certain period of time from any one of the specified illnesses covered in the policy. Often this is 28 days or 1 month depending on the terms and conditions.

Accident Sickness and Unemployment Protection

This is a special type of plan which protects your repayments if you lose your income due to an accident, illness or unemployment. The income is normally only paid for 12 months but some plans pay for longer periods. Often there is a waiting period before the income is paid and this would depend on how the plan was set up.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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