Why Life Insurance?

Life insurance provides valuable financial assistance in the event that the unthinkable were to happen.

Your mortgage is probably the biggest financial commitment you'll make. It also pays for the most important possession that you have, your home. This is why it is important that you protect it and ensure that your mortgage can be paid off in the event that you were to die unexpectedly. Life cover could provide your loved ones with a cash lump sum to repay the mortgage outstanding entirely.

If you do not have a mortgage or want to provide cover over and above the mortgage balance that you have then having life cover would act as protection for your loved ones' financial future if you were to die.

We can also help by reviewing any current provisions you have and based on your circumstances, help you to prioritise your needs and provide advice accordingly.

Your Options

There are generally two types of cover that can be arranged:-

Decreasing Term Assurance

This is where the amount of cover decreases over the term of the policy. This plan is designed to be the most economical way to protect a capital and interest repayment mortgage. As your mortgage balance decreases so does your cover*.

*In some circumstances the amount of cover may not be enough to repay the mortgage in full. This is due to the fact that the policy will be set up using a nominal interest rate over the term of the policy ie 10% over 25 years. If you had to claim on the policy at some stage and the interest rate on your mortgage averaged in excess of 10% for this period then the cover provided would be less than the mortgage balance.

Level Term Assurance

This is where the amount of cover remains the same throughou the term of the policy. This type of policy is designed to protect an interest only mortgage where the mortgage balance is not decreasing. The amount of cover remains the same as does your mortgage balance so the cover is constant during the term of the policy.

You can also include Critical Illness Cover with your Life Insurance, please see Critical Illness Insurance for further details.

How Much Does Life Insurance Cost?

As with any insurance that we provide, the cost to you must be affordable. This is why we provide cover from a range of insurers to make sure you have the best possible cover at the best possible price. In addition the advice that we provide you is backed up by a recommendation and a full explanation as to why we have chosen the product and provider. The full details of our service are provided within our Disclosure Document.

Bank of England Base Rate is 0.5% (last updated 10/02/11)- next update due 10/03/11

My colleague is buying a house and I have given her your details so she can speak to you about a mortgage. I thought the service you provided was fantastic and it made the mortgage part of the move very smooth and stress free! Thanks again!

Miss F - Wimbledon

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24th October 2019

d g s mortgage solutions ltd
84 Balham High Road
SW12 9AG

Tel: 0845 3626206
Fax: 0845 3626208