If you are happy we will post out your aggreements
We will process and arrange your funds to be released
Our expert advisers are waiting to find you the best deal from the UK’s top mortgage and loan providers.
Policy types
Most people have two main protection needs: paying off large debts like the mortgage, and family protection where you leave behind money for your family to live on after you've died. Different types of policies are good for different protection needs. The most basic type of life insurance is called term insurance. With term insurance you choose the amount you want to be insured for and the period for which you want cover. If you die within the term, the policy pays out - if you don't, it doesn't. There are two main options to consider - level-term and decreasing-term insurance. For many people a combination of the two is the best answer.
What is it?
A level-term policy pays out a lump sum if you die within the specified term. The amount you're covered for remains level throughout the term - hence the name.
Who's it good for?
It's a good option to consider for family protection, where you want to leave a lump sum that your family can invest to live on after you've gone. It can also be a good option if you need a specified amount of cover for a certain length of time, e.g. to cover an interest-only mortgage that's not covered by an endowment policy.
Things to consider
If you want to keep things very simple you can have one policy large enough to provide your family with the cover they need and pay off debts like your mortgage. However, we think its often best to separate your life cover needs so you know exactly what policies you've got and what they're for. And, whilst level term might be OK for interest-only mortgages (because the amount you owe stays the same throughout the term), a cheaper option for repayment mortgages is decreasing-term.
Decreasing-term policies are designed to run alongside repayment mortgages.
What is it?
As the name suggests, with a decreasing-term policy, the amount you're covered for decreases over the term of the policy.
Who's it good for?
These policies are designed to run alongside repayment mortgages, because on this type of mortgage the amount you owe decreases each year as well. Premiums are typically a third cheaper than for level-term cover. Because it's so often used as protection on repayment mortgages it's sometimes referred to as mortgage protection cover.
This is also a type of term policy but pays out an income. It's therefore a good option for family protection if your dependents would prefer to receive a set income each year, rather than have a large lump sum to manage. The upside of FIB is that it's easier to work out how much you need. E.g. if you take home £1,000 a month you can arrange for the same amount to be paid out to your family if you die. However, there is a catch. If you die two years into a 20-year FIB, your family could get £1,000 a month for 18 years. But if you die a year before the policy ends, your family gets £1,000 a month for just one year. The cost of a FIB is about the same as level term insurance - but provides less value.
Critical illness cover
You can include critical illness cover with your life insurance policy at an additional cost. This pays out a lump sum of money if you are diagnosed with certain specified critical illnesses, during a fixed period of time ('the term') and are eligible to claim.
Life insurance will help you look after your loved ones after you've gone.
Expert tips
Buying life insurance makes us think about dying - and that's something none of us want to contemplate. It's easy to think ‘I'll do it later’ but, if you have someone who depends on you financially, life insurance is a must. And the sooner you buy it, the cheaper it will be.
First Choice Finance is a trading style of Termpart Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire SK6 8DX.
Consumer Credit Licence No 0255609. Company Registration Number 2316399
The overall cost for comparison is 6.0APR.
(most people will receive a lower rate than this)
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. A FEE OF UPTO 3% MAY BE CHARGED ON COMPLETION OF YOUR MORTGAGE. TYPICALLY £1800 - ON COMPLETION ONLY. NO MORTGAGE, NO FEE.
