Insurance services are well developed in the UK: insurance policy can be purchased at the bank, on all kinds of internet sites and even in the supermarket. However, getting a right policy is not as easy as it might seem at first glance. It may turn out that the payment falls under the inheritance tax (which is 40%), or that insurance coverage is reduced just at the moment when new insurance is no longer available due to a change in health or age, or mortgage insurance does not cover the debt.
Mortgage protection
This type of life insurance is specifically designed to secure mortgage payments in the event of an untimely death. The amount insurance benefit decreases over time in proportion to your mortgage payments under this plan.
The advantage of mortgage life insurance is that it provides a single payment rather than multiple payments. This makes it easier for people to properly plan their budget.
Policy selection
The first thing you need to decide is what kind of insurance coverage you want to get. There is a number of policies available that you can use to cover your mortgage. You can buy mortgage insurance, but you can also buy life insurance.
Long term life insurance
Life insurance guarantees a lump sum payment in the event of death of the insured person (or in the event of serious injury). Such an insurance policy can be obtained from private insurance companies. It is necessary to pay a monthly insurance premium, the amount of which depends on the number of risks covered. It is possible to conclude a life insurance contract as part of a social package provided by the employer or as an additional option in the private health insurance program.
If you are not sure which type of policy is right for you or how much coverage you need, contact a financial advisor. The specialist will help you find the right policy and provide affordable offers from the country's leading insurance companies.
Source: https://theedinburghreporter.co.uk/2022/07/mortgage-life-insurance-finding-a-policy-that-suits-you/
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