Life Insurance
If your family relies on your income, what happens if it stops?
Life insurance pays a lump sum, or a regular income, to the people you choose if you die during the policy term.
It can help clear a mortgage, replace lost income and give your family time to adjust, rather than leaving them to make difficult financial decisions at the worst possible moment.
Free initial conversation, with no obligation. You deal with Des directly.
At a glance
What it pays
A lump sum, or a regular income, if you die during the term
Who it's for
Anyone with dependants, a mortgage or debts others would have to repay
Types
Level, decreasing or family income benefit, on one life or two
Often written
In trust, so the money can reach your family without waiting for probate
Authorised and regulated by the Financial Conduct Authority. FCA No. 1034779
Most families depend on one or two incomes
Mortgage payments, bills, childcare and everyday living costs don't stop if a parent or partner dies.
Savings rarely stretch far, and any death in service cover from an employer usually ends when you leave that job. Life insurance is designed to fill that gap, for the period your family needs it.
The aim isn't to make anyone better off. It's to stop a loss becoming a financial crisis as well.
Level cover
- Level cover pays the same amount whenever you die during the term
- Often used for family living costs or interest-only debts
- Usually costs more than decreasing cover
Decreasing cover
- The amount reduces over the term, broadly in line with a repayment mortgage
- Often used to clear a repayment mortgage
- Usually costs less than level cover
What can happen if nothing is in place
The financial impact on a family can be immediate and long-lasting.
- The mortgage still has to be paidYour family may struggle to keep up repayments on one income, or none.
- Everyday costs continueBills, food, childcare and transport still need paying every month.
- Savings run outEmergency savings can disappear quickly when an income stops.
- Debts fall on othersJoint loans and some other debts may need to be repaid by your partner.
- Big decisions under pressureYour family may have to move home or change plans while grieving.
- Delays and taxA policy not written in trust may form part of your estate and wait for probate.
How life insurance works
Cover is built around what your family would need, for as long as they would need it.
Work out what's needed
We look at your mortgage, debts, income, dependants and any cover you already have, including death in service from work.
Choose the type and term
Level, decreasing or family income benefit, on one life or two, for a term that matches your commitments.
Apply and answer accurately
The insurer asks about your health and lifestyle. Answering fully and accurately matters: incorrect information can affect a claim.
Write it in trust where suitable
A trust lets the money go to the people you choose, usually without waiting for probate.
If a claim is made
The insurer pays the lump sum or income to your trustees or beneficiaries, subject to the policy terms.
Who life insurance is suitable for
It's worth considering if anyone would struggle financially without you.
- Parents with children who depend on them
- Couples where the household relies on both incomes
- Homeowners with a mortgage
- People with debts that others would have to repay
- Business owners whose family relies on income from the business
- Anyone whose death in service cover would end if they changed job
When it may not be the right answer
If no one depends on your income and you have no debts that others would have to pay, you may not need life insurance. It also doesn't pay out if you're seriously ill but survive; that's what critical illness cover is for. Cover is subject to underwriting, so terms depend on your health and circumstances.
Practical examples
These examples are illustrative only. The people are fictional, not clients, and any outcome would depend on underwriting, the policy terms and a valid claim.
- Illustrative example · Young family
A repayment mortgage and two children
A couple with two young children have a repayment mortgage.
The option: decreasing cover to clear the mortgage, plus family income benefit for living costs.
The result: if a claim were paid, the mortgage could be cleared and a monthly income paid until the children are older.
- Illustrative example · Single parent
One income, one household
A single parent is the only earner in the household.
The issue: without cover, the children's guardian would have little to support them.
The option: level cover written in trust, so any payout goes to the people chosen to look after the children.
- Illustrative example · Couple
One joint policy or two single policies?
A couple are deciding between a joint policy and two separate ones.
The trade-off: a joint policy usually costs less but pays out only once.
The alternative: two single policies cost more but could pay out twice if both people died during the term.
Common questions
What's the difference between level and decreasing cover?
Level cover pays the same amount whenever you die during the term. Decreasing cover reduces over time, usually in line with a repayment mortgage, and generally costs less.
Should we have a joint policy or two single policies?
A joint policy usually costs less but pays out only once, on the first death. Two single policies cost more but could each pay out. The right choice depends on your circumstances.
What is family income benefit?
Instead of one lump sum, it pays a regular income to your family from the date of a claim until the end of the term. It's often used to replace lost income while children grow up.
Why write a policy in trust?
A trust lets the money go to the people you choose, usually without waiting for probate, and normally keeps it outside your estate for inheritance tax. Trusts are not regulated by the Financial Conduct Authority, and the right trust depends on your circumstances.
I have death in service cover at work. Is that enough?
It may help, but it usually ends if you leave the job, and the amount may not match what your family would need. I'll take it into account when we look at what's needed.
Do I need a medical?
Not always. It depends on your age, health and the amount of cover. The insurer may ask for a GP report or a medical examination.
What affects the cost?
Your age, health, lifestyle, whether you smoke, the amount of cover, the term and the type of policy.
Life insurance has no cash value unless stated, and pays out only on a valid claim. Cover is subject to underwriting and accurate disclosure. Trusts are not regulated by the Financial Conduct Authority. Tax treatment depends on individual circumstances and may change.
Talk it through with me
Every family's situation is different. A conversation is the quickest way to work out which cover, if any, makes sense for you, and what it would cost.
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