Life Insurance

Providing you and your family’s protection

Part of the service offered by Evergreen Mortgage Services will include a personal recommendation on how to protect your mortgage against some of the less pleasant eventualities that inevitably DO happen in peoples lives. At Evergreen Mortgage Services, our professional advisers will recommend a suitable and affordable mortgage protection package to give you the security of knowing that you can continue your monthly payments or pay off your mortgage in full should your circumstances change dramatically.

Anyone with family and financial obligations shouldn't think 'do I need it?' but rather 'what kind and how much?' Different life insurance policies suit different needs. Fact: Today 1 in 3 people are diagnosed with cancer, many other critical illnesses are also on the rise – the simple truth is you need protection.

Life assurance is an affordable way to protect your family's standard of living and give them a secure future in the event that you're no longer there for them. You are free to choose the level of cover required. If you die, your insurance policy will pay out a lump sum or regular income for the amount insured.

How much does protection cost and which is the cheapest?

Many people only make comparisons on price and end up buying a policy that is not right for them and may not provide the cover needed.

Price comparison sites often list a product called ‘reviewable term assurance’ as one of the cheapest life insurance policies for you. However with reviewable term assurance, the premium may increase during the term of the product. This type of policy may be presented as one of the cheapest life insurance policies at the beginning, but it could rise significantly during the term of the policy. Take care when arranging life assurance or any protection policies and always seek qualified advice. Nowadays, most people agree that there’s little point paying for protection that will not cover you and your family’s urgent needs when a crisis happens.

Types of Life Cover

Life Assurance is a simple and inexpensive protection policy which pays out a lump sum in the event of the death of the policyholder. Life Assurance is crucial if you have a mortgage. No one thinks it will happen to them, but death and serious illness are facts of life.

More than one type of life cover is available but the main two are: Level Term Assurance, in which the amount paid out remains the same throughout the term of the policy, and Decreasing Term Assurance in which the amount reduces in line with the mortgage balance as the policy goes on. We can offer advice on both types of mortgage insurance outlined above. Term insurance is usually available on either a single or joint life basis

Benefit:

Part of the pay out from your life cover could be used to clear the mortgage, meaning your family do not have to suffer financially with the worry of taking on the outstanding mortgage or be forced to sell the property should the worst happen.

Critical Illness Cover

During the term of the policy, on diagnosis of a critical illness this cover will pay out a lump sum that you could use to clear or reduce your mortgage to give you peace of mind and allow you to concerntrate on your treatment and recovery.

Benefit:

As this policy pays out on diagnosis of one of the specified illnesses or conditions, you can decide whether to clear your mortgage or whether to use the money to pay for medical treatment or any other purpose that you choose. Even if you go on to make a full recovery, you do not have to pay the money back to the insurance company.

Conditions covered in most critical illness benefits are listed below, but please use these as a guide only.

  • Alzheimer's Disease
  • Angioplasty
  • Aorta Graft surgery
  • Benign Brain Tumour
  • Blindness
  • Cancer
  • Coma
  • Coronary Artery By-Pass
  • Deafness
  • Heart Attack
  • Heart Valve Replacement
  • HIV/AIDS (under certain circumstances)
  • Kidney Failure
  • Loss Of Limbs
  • Loss of Speech
  • Major Organ Transplant
  • Motor Neurone Disease
  • Multiple Sclerosis
  • Paralysis/Paraplegia
  • Parkinson's Disease
  • Stroke
  • Third Degree Burns
  • Permanent Total Disability

Income Protection Insurance

If you are unable to work due to an illness or accident, income protection insurance will provide a regular income until you either return to work, or the mortgage is paid off, or until you die.

Benefit:

You can concentrate on your recuperation rather than worrying about finding the money to make your mortgage payments.

How much cover is enough?

There's no great theory behind this. Some advisers recommend the ‘ten times your annual salary’ approach. But like anything linked to money, it's personal to your circumstances and depends on your lifestage, your partner's income, plus any further investments and equity you hold.

The key is to consider your current salary or contribution and the level of income your dependants would need to maintain their lifestyle until they are fully self-sufficient. It is certainly more complex than a simple replacement salary. Many factors should be considered. The process we might take you through could include:

  1. Examining your mortgage and outstanding debt, such as loans and credit cards held in your name. You would need at least enough to cover the balance outstanding.
  2. Looking at your life in detail. How many children do you have? What ages are they? Will they need childcare? How much longer do they have left at school? Do they have aspirations to attend university?
  3. What associated savings would there be? One car instead of two to run? Reduced energy, council tax or shopping bills?
  4. Looking at your partner's current and projected income. If they have a stable career and good income, he or she may not need as much as a partner with no income of their own.

Arrange an assessment of you and your family's protection package

EMS cover London, Hertfordshire, Buckinghamshire, and Berkshire. For life insurance, critical illness insurance and income protection (permanent health insurance) we offer products from a selected panel of providers. If you would like to arrange an initial discussion please call 0844 332 1695 or send an email via our ‘Contact Us’ page and we will be happy to call you at a convenient time.