Life Assurance policies typically consist of a small premium paid each
month for the duration of a policy. In some instances you will not need to take out a
policy, as it may already be included in your mortgage (as in the case of some endowment
As a first step, you should ask your mortgage provider. If you
dont have it included, your mortgage company may offer you their own or an
associates policy. As with everything in life, it is always worth shopping around.
How much will I have to pay?
Initially you will need to supply the following information which
effects the value of the premium you pay each month:
Your sex - women live longer on average.
The size of the initial sum assured - the higher the sum the larger your premium.
The duration you want covered.
Whether you smoke - medically a higher risk to the insurer.
Your general state of health. (Click here to find out more about
providing medical information).
Occupation - occasionally some companies will charge different premiums depending on your job, especially if it is viewed as hazardous (stuntmen take note!).
What about my partner?
You can apply for either a single or joint policy. The joint policy
will cover both yourself and your partner, and you will also need to provide the above
information on your partner as well. The benefit is paid on the first death, so long as
the death occurs before the policy expires.
What happens if I become unemployed?
On the 1st October 1995, the government altered legislation which
effected the unemployed. Now, anyone taking out a mortgage will not be eligible for State
assistance with their repayments for a full nine months.
What is more, even after the first nine months have passed, your
benefits will still be restricted to half the monthly cost.
To find out about which type of policy is best for you, read the Types
of Life Assurance guide.