Nobody wants to leave his or her dependents destitute, so if you are taking out a mortgage, you really ought to consider - at the very least - taking out some life assurance to cover the mortgage.

It is possible to provide protection with ether a decreasing term assurance plan, where the level of cover reduces broadly in line with your reducing debt, a level term plan where the cover remains at the level you took it out at or a whole of life policy which runs for as long as you want and may provide some money when you cash in.

Term assurance is usually bought to cover the mortgage term only and nowadays is extremely competitive. This means you can obtain high levels of cover for relatively low premiums, although remember there is no residual value when the policy ends.
Level term assurance offers a guaranteed lump sum in the event of death during the policy. Decreasing term is a popular option that is sold with repayment mortgages and is usually a cheaper option than level term assurance.

It is also possible to take a plan with cover against a critical illness. This aims to pay out a lump sum on the diagnosis of a serious illness such as a heart attack or a cancer. Whist these plans can be expensive they can offer useful peace of mind. The market can be complicated with some companies offering a narrow range of illnesses and some offering a much wider range not necessarily at a higher monthly cost.

The Next Step

Get in touch with us if you’re concerned that you’re not providing enough protection for your dependents. We believe all clients have a unique set of circumstances. As independent financial advisers we conduct a review of your situation and help you identify the cover that best suits your circumstances.

Our service is not redistricted to our local area. We have clients all over Great Britain. We are able to help wherever you are in the UK. If you would like to discuss you circumstances in confidence, please do not hesitate to get in touch on City Investments 01244 317788

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. City Investments is an Appointed Representative of the M&E Network Ltd, which is authorised and regulated by the Financial Services Authority. The M&E Network Ltd is entered on the FSA Register ( under reference 150643.

Licensed credit brokers. Written quotes on request. Loans subject to status. A suitable life policy may be required. Be sure you can afford the repayments before entering into any credit agreement. Information on this site is believed to be correct at time of issue and subject to change without notice. Any quotation issued is not an offer of a mortgage. Mortgage fees may be payable. The exact amount will depend upon individual circumstances. Please ask for an individual quotation. Typically, however, the fees may be £90 on application and £150 on completion.

The information on this site is for general guidance only and is subject to the UK regulatory regime. Privacy Statement/General Terms. It is targeted at consumers based in the UK City Investments is owned by G Davies BSc (Econ), CeMap, Principal. © Copyright City Investments February 2004. All rights reserved.