Life insurance Kitchener when buying a new home

 There are certain life events where a little extra protection comes in handy. Such as starting a family or when you get married. This also includes the purchase of a new home. When investing in a new mortgage, life insurance Kitchener should be coming up in conversation.

Life insurance when investing in a new home enables your loved ones to keep up with repayments should the worst happen. The policy is an agreement between you and the insurance provider in which the provider pays a financial payout in the event of your death. It allows the family to be able to cope financially so that outstanding debts and living expenses are not so much of a burden.

Why is life insurance needed?

Life insurance isn’t compulsory. However, having an added layer of protection gives both you and your loved ones peace of mind. It means that liabilities such as the mortgage are going to be met should the worst happen. It’s a source of money that your family can rely on to cover debts, mortgage or utility bills if you were to pass away.

How much is life insurance?

It’s no lie, buying a home can be expensive. It’s not just finding the deposit, but paying for stamp duty, valuation fees, estate agent services and removal costs. Not to mention the ongoing cost of maintenance and repair. That’s why getting life insurance on top can sometimes seem like an unnecessary added expense.

But that’s not the case. Life insurance can actually be an important factor in keeping your family afloat when they need it most. What’s more is that life insurance doesn’t need to break the bank and can cost as little as £5 a month. Costs vary depending on a number of different factors. This can include the type of policy you take out, the amount of cover, the term of the policy, your age, weight, lifestyle, occupation and medical history. A small payment a month can help your family to keep the house should you pass away.

What types of cover are available?

There are different ways in which you can set up your life insurance policy. You can either choose between whole of life cover or choose term assurance which runs for a fixed period of time. Whole of life will run until the event of your death, but a term assurance has a set term and will run until the end of the term. It is worth to consider that premiums can become more expensive with age, therefore getting a longer term or whole life can be beneficial.

Decreasing term life insurance policy

This is where the life insurance covers the outstanding balancing of a repayment on a mortgage. With each payment that you make, the amount paid out reduces. Due to the decreasing level of cover, the premiums on this type of insurance tend to be lower.

Level term insurance

A level term insurance doesn’t change over a period of time and the premiums stay the same. The same amount of benefit is set throughout the term as well.

Increasing term insurance

This is where the pay-out rises in time to stay in line with the cost of living. However, in this case, so do the premiums. If you’re budget conscious, an increasing term can be a great policy to start out on.

Paying the premiums

There are different types of premiums for policies too. A guaranteed premium policy ensures that the premium amount does not change over time. You can also set up life insurance as a reviewable term. This is where the premiums are reviewed at certain points during the term based on changes in your life. However, it can be more expensive in the long term as premiums get more expensive with age.

Other things to consider

When setting up life insurance, you’ll need to consider whether you will want a joint life or single life policy. It is recommended that both partners are insured rather than just the breadwinner for added protection. It’s also important to set up the policy in trust. This ensures that money goes to the beneficiaries you choose.

In addition to this, it can be beneficial to not just look for the cheapest deal, but invest in the best deal for you. Additional benefits over time can be more useful and ensure that your family are protected and supported when they need it the most. For a free quote on your life insurance Kitchener, get in touch today.