LIFE INSURANCE

Term Insurance

Term insurance is a policy that will cover you for a specified period of time (the “term” of the policy). There are two types of term insurance – level and decreasing.

Level Term

Level term insurance is straight forward – when you make your application, you decide how much you want to pay each month or how much you want the policy to pay out (known as the “sum assured”) and how long you want the policy to last. You loved ones will receive the payout if you pass away during the term of the policy.

The sum assured – the amount that your loved ones will receive – stays the same throughout the policy.

The term of the policy is entirely up to you, but when deciding on how many years of cover you need, you should consider things such as:

The ages of any dependent children, and how long it will be until they are able to support themselves financially.
If there are any other family members who would struggle if you were no longer around to provide support (such as elderly parents or those needing care).
If there are any significant debts that your family would have to pay off after you die.

Most level term insurance pays out a one-off cash lump sum. Your family won’t pay income tax or capital gains tax on a life insurance payout, but they might have to pay inheritance tax, depending on the size of your estate. It’s a good idea to write your life insurance policy into trust, which places it outside of your estate and means that the right people get the money when they need it most – it’s a simple process, and our advisers will guide you it.

Decreasing Term

Decreasing term life insurance is a type of life insurance that reduces over time. This is usually set in-line with debts i.e. a mortgage, which will reduce over the period of time of the agreement. Decreasing terms are cheaper than the standard term, but you’ll receive less of a pay-out the longer the policy exists.

Family Income Benefit

Unlike a traditional life insurance policy, family income benefit insurance is a type of policy which pays your loved ones a monthly payment until the end of the agreement instead of a lump sum.

You should work out how much your dependents need per month and agree that figure with your insurer. This is considered a decreasing term policy, because the total payments decreases with time.

Whole Of Life

A whole of life insurance is a policy, which covers you for the remainder of your life. Generally, it’s slightly more expensive than a term assured policy as it never comes to an end until you pass away. You will pay a monthly fee and upon your passing your loved ones will receive the agreed payment.

OVER 50’S LIFE INSURANCE

Over 50s life insurance is aimed at anyone between the ages of 50 and 80, who needs cover to pay for funeral expenses, or leave a gift to their loved ones.

Over 50s insurance is competitively priced – policies start at as little as £10 a month. There are often no medical questions during the application – you just need to be over 50 to get cover, making this ideal for anyone with pre-existing conditions or a more complex medical history.

Over 50s life insurance is a whole of life type insurance policy – as long as you make your payments, your loved ones are guaranteed to receive a payout. Many providers won’t ask you to pay your premiums after the age of 90 – meaning that you’ll have life cover for free once you reach a certain age.

LIFE INSURANCE FAQS

How much does life insurance cost?

The cost of life insurance will vary depending on the amount of cover. The more cover you have, the higher your monthly premium will be. Every life insurance quote will be personalised to you and your lifestyle. There are several things that considered in a life insurance quote.

What type of life insurance do I need?

This is down to personal circumstances and how much cover you need. There are different types of life insurance to cover all your needs, they are:

Term assured
Family income benefits
Whole of life

Each one has different benefits and will come at different costs for the agreed term.

How much life insurance will I need?

That will depend on your personal choice and also your personal circumstances, family situation and your overall aims. Some people just want insurance to pay off the mortgage, others want to cover funeral costs, or to leave an inheritance for their children, and some want a combination of the above. It’s best to talk to one of our advisers as they can discuss your situation and make sure you have the right cover to look after your loved ones.

Want to speak with us? There are plenty of ways to get in touch…

Our friendly team look forward to hearing from you.

Tel: 0203 1299 628 | 07973 758283
Email: arash@aandamortgages.co.uk

A&A Mortgages is an Appointed Representative of Dragon Brokers Limited t/as The Dragon Network which is authorised and regulated by the Financial Conduct Authority under registration number 599430. Registered office: 2 Acorn Grove, Kingswood, Tadworth, Surrey, KT20 6QT Registered in England.

A&A Mortgages is a credit broker and you can confirm our registration on the FCA’s website www.fca.org.uk

The actual APRC you are eligible for depends on individual circumstances.

If you are thinking about consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON A MORTGAGE.

The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

The Financial Ombudsman Service (FOS) is an agency for arbitrating of unresolved complaints between regulated firms and their clients. Further details of the FOS can be found on its website: www.financial-ombudsman.org.uk

Terms of Business

1. Introduction

This document outlines the services we provide. It is an important document, so please make sure you read it carefully. If you have any questions, please feel free to contact us. Last updated 02/09/2024

You should read this document alongside our Privacy Policy.

2. Who We Are

3. Our Services

We are a mortgage intermediary service and have access to a comprehensive range of mortgage products. Our service is only available to UK residents with properties registered in the UK. As part of our service we will take time to understand your requirements and explain all parts of the mortgage journey to you.

If you wish to see a full list of lenders we use, please contact your adviser.

4. Our Fees

We may charge an application and/or broker fee for the service that we provide but this will depend on individual circumstances and the product recommended.

A typical administration fee of £0 may be charged for a first charge mortgage.

A typical broker fee of £495 – £995 may be charged for a first charge mortgage.

We will tell you how much the total fee will be in good time before you apply for a mortgage, but you may ask for this information earlier.

Both fees are non-refundable. The administration fee is payable upon application and the broker fee upon offer. If you withdraw your mortgage application after submission to the lender, you may still be charged the broker fee. The broker fee can be paid from your own funds or added to the borrowing amount (subject to lender approval). If added to the borrowing amount, it will accrue interest at the same rate as your mortgage over the term.

The lender recommended may pay us a commission for the service that we provide. This will be disclosed to you before completion of your mortgage.

You will receive a key facts illustration when considering a particular mortgage which will detail any fees relating to it.

5. Monitoring Service

We will keep in regular contact and email you periodically to keep you updated on your mortgage deal. You will automatically benefit from this service on completion of your mortgage application. If you wish to stop this service, contact us. We may retain certain data required based on our regulatory requirements.

6. Intermediary Service

We will provide mortgage advice based on your personal information and circumstances; we do not provide execution-only service. Once we have established which mortgage is most suitable for you, we will make a recommendation based on your preferences and circumstances. It is your responsibility to ensure the information you provide is factual and accurate. We may need to see evidence to support your application with the lender.

We will provide you with a mortgage illustration based on our research. Please take time to read and understand this document.

It is important to note that if we recommend a Buy-to-Let mortgage for you, not all Buy-to-Let mortgages are regulated by the FCA.

7. Mortgage Application

There are various stages to the mortgage application process when using our intermediary service. We will keep in regular contact with you throughout the process and if we are unable to assist, we will contact you at the earliest possible opportunity to inform you.

We may refuse to proceed with an application for the following reasons:

– The information provided is not factual, accurate or misleading

– We believe that the available products are not suitable to your circumstances

– We have reason to believe that you have made a high volume of applications and/or repeatedly apply then withdraw.

– You fail our know your customer (KYC) and anti-money laundering (AML) due diligence process

If you are applying for a mortgage in respect to a property you wish to purchase, it is your responsibility to provide all necessary information including the solicitor, estate agent and/or conveyancer.

We may also require proof of deposit to further satisfy our requirements.

8. Ancillary Products

We may offer you alternative services including life, critical illness, income protection, accident/sickness and unemployment insurance. We may also offer building and content insurance to you if you require.

9. Collecting Your Data

To advise you on the best mortgage for you circumstances, we are required to complete a fact find. We may also require documentation to support your application such as: passport, driving licence, bank statements, payslips, tax overview or accounts.

10. Data Protection

We will hold the personal information provided by you securely and in confidence. Please ensure you read our privacy policy so that you are aware of how we process your data. This will offer more detail on how we collect, use and retain your data.

11. Financial Crime

We are committed to ensuring there is integrity within the UK mortgage market. All transactions relating to our services adhere to the Money Laundering Regulations and Proceed of Crime Act.

We are required by the FCA to have adequate systems and controls in place to prevent the furtherance of Financial Crime.

12. Our Complaints Process

Our priority is to offer the highest level of service to our customer. Your feedback is important to us and helps us understand where we can improve. If there is a problem, please let us know and we will do everything we can to resolve it straight away.

If your complaint refers to your personal data and how this is processed, you can find more information about your rights in our Privacy Policy.

If your complaint cannot be resolved straightaway, we will acknowledge receipt in writing, confirming our understanding of your complaint, the complaint handler and giving you the opportunity to provide further information or documents.

If you are dissatisfied with our response, you can contact the Financial Ombudsman Service.

They are a free and independent service. You must do so within six months of the date of The Dragon Network’s final response letter.

Website:

www.financial-ombudsman.org.uk

Post:

Financial Ombudsman Service, Exchange Tower, London, E14 9SR

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The content on our website is provided for information only.