Life Assurance

As you are seriously considering a lifetime mortgage, you should also take advantage of the opportunity to review your existing arrangements for life insurance. There's no longer going to be a mortgage that requires protection, but have you made arrangement to protect your spouse's income when yours is no longer there to help him or her to continue to live comfortably?. How much is left in your estate; for example does it need protection against Inheritance Tax?. Do you want to leave legacies to your children or grandchildren?

These needs, and any others, can be addressed using simple life assurance policies.

Life Assurance for IHT protection comes in various different forms and you should discuss this with an independent financial adviser, such as The Mortgage Shop, to find out which of them would best suit your circumstances. the Site Map.

The calculator on the right will suggest a possible figure to match your need. It assumes that the benefit, as well as any other existing benefits, would be used initially to clear your mortgage, credit cards and any other loans, and that the remainder would be used to protect your family or for any other purpose you have in mind, such as education.

It will be a compulsory condition of any mortgage that the building must be insured for whatever figure the valuer stipulates as the current cost to rebuild the property and the sum insured must be index linked or for a figure substantially more than the present value (typically £500000).

Note, this is not necessarily the agreed value for mortgage purposes; it can be more or less than that, depending on the construction of the property and its location. For example, it would probably be less than the purchase price for a bungalow in its own garden, but more for a terraced house. Contents can also be covered under the same policy for an extra charge, but this is not compulsory.

Some companies recognise the greater life expectancy of non-smokers by offering lower premiums to those who have not smoked cigarettes, or sometimes all forms of tobacco, for at least 12 months and who have no intention of smoking in the future. On a joint life basis, this concession may sometimes also be offered to the non-smoker of the pair.

This can help to reduce the cost of life assurance by anything up to 50%.

The Mortgage Shop is a retired IFA that no longer gives direct advice on or arranges Equity Release. Instead, it passes your enquiry to a fully qualified and licensed professional firm in your local area that will do this for you. This is a FREE referral service to you, without any obligation, and you are completely at liberty to negotiate with the firm concerned the terms for their advice and services. The information provided is on the basis of our understanding of UK tax law and Inland Revenue practice and is subject to change. This site is intended for persons aged 18 or over, resident or ordinarily resident, in the United Kingdom. email: bobstark@mortgagefor.me.uk

This is about Equity Release Plans. To understand the features and risks, ask for a personalised illustration. The actual APR rate available will depend upon your circumstances.

I recently succesfully challenged a DWP statement that a married couple were not entitled to Pension Credits. As a result, their income was increased by almost £175 per month

How Much Life Assurance Do I Need ?
This calculator may help you to decide how much life assurance your dependents would need.
Funeral and other expenses (�):
Amount needed to pay off mortgage, credit cards, loans and any other debts (�):
Emergency fund (�):
Children's future education (�):
Anticipated family average annual cost of living (�):
Expected spouse's average annual after tax income (�):
Likely Social Security Benefits (�):
Spouse's current age (#):
Value of current liquid assets (� total of any existing life assurance (including employee benefits), savings, investments, etc.):
Expected dependent's investment strategy:

Suggested Amount of Life Assurance Needed: