Life Insurance Cover

Life insurance is typically bought to cover a mortgage, so in the event of your death. It gives peace of mind in that if you are no longer around, your family will benefit from a cash lump sum which will provide financial security.

It’s particularly important for people with dependants, a partner or family looking for financial security.

Types of Critical Illness Insurance

How Much Cover Should I Have?

How Much Cover Should I Have?

A rule of thumb is to cover 10 times the main breadwinners income. The aim is to have enough cash to cover the lack of income if you're gone. So if you've no partner or children who need the money don't bother. If you do need cover, it's important to consider the financial impact if you died.

For example you need to ensure that you take out enough to cover your mortgage. For example, if you’ve got a 25 year mortgage for £450,000 and you take out mortgage life cover for £300,000, you’ll be at risk of underinsuring your mortgage. Which means your family will be left with a shortfall to cover the outstanding mortgage.

Should I write my life policy into trust?

Writing a policy in trust means the payout from the policy will be paid directly to the beneficiaries rather than your estate. Because the policy is held within trust It means that the payout won’t be subject to inheritance tax. It also means payment to your beneficiaries will probably be quicker, as the money will not go through the probate process. Instead, the insurer can arrange the payout once they’ve received the death certificate and any other required documents.

Should I write my life policy into trust?


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Rettie Financial Services Ltd

Rettie Financial Services Ltd is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.

Rettie Financial Services Ltd. Registered Office Address: Deuchrie, Dunbar, East Lothian, United Kingdom, EH42 1TG. Registered in Scotland Number: SC711925.

For insurance business we offer products from a choice of insurers.

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