Life Insurance can be confusing especially with the different jargon that gets used. All you want to do is make sure you’ve setup the right cover for you and your family. Our blog sets out to answer some of those most asked questions about life insurance.

1. What types of cover can I get?

   • Level Cover
     • This means the amount of cover and the premium you pay is fixed when your plan starts, and doesn’t change.
   • Decreasing Cover
     • This type of cover is designed to cover the reducing amount on a capital and interest repayment mortgage. The amount of cover will go down each month, but the premium you pay is fixed when your plan starts and never changes.
   • Joint or Single Cover
     • You can choose to take out a plan that covers just yourself, or your spouse, civil partner or someone you share a financial commitment with.

2. What’s the difference between level cover and decreasing cover?

   Level life cover provides the same amount of cover throughout the term of the policy. For example, if you chose £150,000 over the next 30 years and died in the last year, you’d get the full £150,000.

   Decreasing cover reduces over the term of the policy and is usually cheaper than level cover. Decreasing life cover policies pay-outs usually reduce in line with your mortgage.

3. Should I get a joint policy?

   Joint life insurance policies can be taken out with you spouse, civil partner or someone you share a financial commitment with. It’s usually cheaper than two separate insurance policies. The policy only pays out once – meaning if one partner died, the other would no longer have their life insured.

4. I have life insurance through my employer, do I need more?

   Life insurance is sometimes offered as a benefit from employers. It is often known as “death in service”. A reminder though, if you were to leave or lose the job, the cover would stop

5. Should I put my Life Insurance in a trust?

   A trust is a legal arrangement that allows you to gift the proceeds of your life insurance policy to the individuals you specify. If your life policy isn’t held in trust, it will be normally be considered part of your estate. Putting it in trust will mean it could be exempt from inheritance tax, increasing the amount of many passed on to your loved ones.

6. Will existing medical conditions affect my policy?

   If you have any existing medical conditions you’re more likely to pay a higher premium or may find it harder to get insured. Sometimes you can arrange a policy that excludes the pre-existing condition from your cover.

Please note for these insurance products terms and conditions apply. This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan. Please note that Aberdeen Mortgage Company Limited does not offer advice on taxation matters. You should contact your accountant or other suitably qualified person to confirm whether this product is appropriate for your circumstances.

Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let. Lifetime Finance Group Limited.