Mortgage life assurance is for those who may die during the policy period. It will then ensure that your dependents are not held liable for repaying the loan. The Insurance Company will take care of the balance amount of the mortgage loan. The mortgage life assurance actually means mortgage decreasing term life assurance. It is so called because the mortgage loan is decreasing as the years go by and therefore the amount to be repaid by the assurance company decreases over the years.


UK’s cheapest mortgage assurance policies

Since rates of life assurance policies subjected to daily changes you can not find single cheapest provider at a given day. However, there are few niche execution only brokers who can help you to find the lowest priced policy. Unlike other brokers who charge commission from policy providers, the niche brokers don’t take any commission and instead you just pay a small fee. Hence you get the same policies as offered by other brokers, but at much cheaper rates.

However, the niche brokers just find you the cheapest price without giving any advice and all quotes are based on a healthy person. Hence, your price may go up if you have any health issues. Always check the full terms of the policy to check it suitability to your needs before you buy. Among a number of such niche brokers, there are three which are always competing to be the cheapest. Their details are given below and you may contact them all for the best results.


Cavendish Online has been consistently offering competent prices during the past four years. It pioneered giving up all its commission in return for a one-off fee of £35 for an online application or £45 over the phone and can make it over 50% cheaper than most full-commission brokers. It offers two quotes, the ‘fee’ and ‘fee-free’ option; always choose to pay the fee, the monthly savings eat up the cost of the fee in just a few months. The commission option is only worth considering if your monthly premiums are under £7 a month.

Money World

This is a team of independent financial advisers that provides life insurance for a flat fee of £25 and no commission, either online or on the phone. It’s been around a while but recently moved to the ‘one-off fee’ practice and lowered its prices, and is often the cheapest of the top three.

An important feature of the plan in a unique child insurance investment opportunity by giving you access to professionally managed Investment Funds among other key aspects mentioned above. In order to qualify for the plan you will have to insure yourself under the policy. The age of life insured is 21 years to 50 years. The age of child could be anywhere between 91 days to 15 years. The maximum maturity age of the life insured is 60 years. The policy duration is minimum 10 years and maximum 25 years: The policy term should be such that the age of child, policy maturity is greater than or equal to 16 years and less than or equal to 25 years.

On maturity, the child insurance company will pay you the Fund Value, for your Child’s benefit. However, if you do not want the proceeds on maturity you may choose to defer payment of proceeds to up to 5 years by opting for the Settlement option. 100% of sum assured shall be paid on death of life insured. The child insurance company shall continue to operate the Unit Account even after death of life insured until maturity date. The child insurance company will itself bear and pay all future ATP as per fund allocation chosen by policyholder until maturity date and provide proceeds for the benefit of the Child.

A Family Income Benefit at the rate of 5% of Sum Assured will be paid to the nominee or beneficiary on each policy anniversary following the death of the Life Insured until maturity date. However, cumulative payout under the Family Income Benefit will not exceed 100% of the sum assured. In case of critical illness affecting the parent, lower of 50% of sum assured shall be paid immediately. The insurance provider shall continue to operate the Unit Account even after the death of the Life Insured. In case of death of Life Insured after suffering from critical diseases as mentioned, 100% of Sum Assured will be paid without adjusting or recovering the dread disease benefit already paid.

The life insured have the options to direct his or her investments in to a number of unit linked investment funds such as secure, conservative, balanced, growth or growth super plans. These funds invest in fixed income and equity assets through various methods such as switching, premium re-direction, partial withdrawal, and surrenders.

Through the switching method, the policy allows you to switch between funds and allows you to change your risk return profile of your existing investments, safeguarding and increasing your investments for your child. You have the flexibility to make six free switches in a policy year.

A very suitable option of child insurance is the Child Endowment Participating Insurance lasting up to age 18 with an option to buy a permanent life insurance policy without medical underwriting irrespective of your child’s health at that time. This policy which is especially designed to enable you to provide for higher education of your child and take care of his/her future needs at a time when prices become unbearable.

In order to qualify for the plan the child must be minimum 91 days old and maximum 13 years, and the maturity age is 18 years. At the time of maturity of the plan, the face amount plus accrued bonus, if any, is available on life insured’s survival to maturity. In case of the death of the life insured, there will be a refund of premiums plus interests along with accrued bonus, if any.

If you want to surrender the policy, you will get cash value as built in the policy. However, there will not be any cash value until three years premiums have been paid in full. Also, bonus is not declared for the first three years. At the time of bonus declaration you can choose the option of Paid in Cash Bonus declared by the company. Or you can opt for a lower sum assured for the remaining term of your child insurance policy or you can accept cash value by bank check.

When the insured children reach the age of 18, they will have the option to buy a permanent life insurance policy without medical underwriting irrespective of their health at that time. On maturity of the policy, the benefits payable under the policy shall automatically vest with them. Another advantage of the policy is that the life of the guardian of the child is also covered under the plan. This will ensure the policy continues even if the guardian were to be disabled or is no longer there to pay the premiums.

This option is thus very useful in the case of the guardian becoming permanently and totally disabled as a result of injury or sickness and thereby totally incapable of engaging in any gainful activity or carry out any work, occupation, or profession to earn or obtain any wages, compensation, remuneration or profit. The Personal Accident Benefit with regard to child insurance is a low cost additional benefit that is paid in case the insured’s death or total and permanent disability is caused by an accident. Total and Permanent Disability means accidental injuries which, within 180 days from the happening of such accident and independently of all other causes.

Another important benefit of the chilled endowment participating plan is the cover upon diagnosis of any of the ten diseases such as heart attack, cancer, stroke, CABG, multiple sclerosis, kidney failure, organ transplant, paralysis, COMA, and heart valve replacement or repair.

An important feature of this plan is that the entire sum assured is paid out on maturity and the plan automatically vests when the child turns 18. Besides, refund of premiums plus interest is provided on death of the insured. The sum assured is given in full on maturity. The surrender value is made available on surrender of the policy. From the third policy year, a bonus is declared every year along with tax benefits. The age eligibility is from 91 days to 13 years and the maturity age is 24 years.

Up on the maturity of the policy, the insurance company provides face amount plus accrued bonus, if any, in case of the life insured’s survival to maturity. In case of death of the life insured, refund of premiums plus interests along with accrued bonus, if any are available. Upon surrender of the policy, cash value as built in the policy will be paid at the time of surrender of policy. There is no cash value till 3 years premiums have been paid in full. Bonus Options: Bonus is not declared for the first 3 years of the policy.

When life insured attains the age of 24, they will have the option to buy a permanent life insurance policy without medical underwriting irrespective of their health at that time. On maturity of the policy, the benefits payable under the policy shall automatically vest with them. The benefits of the plan vary according to the age group of the insured. First one is the age group of 20 to 45 years whole life participating or 20 to 55 Years in all other plans. This plan covers the life of the person who proposes the policy. This feature will ensure the policy continues even if the person who proposed were to be disabled or is no longer there to pay the premiums.

The policy covers all the disability benefits under the WOP along with the death. Total disability or totally disabled refers to the person who proposed becoming permanently and totally disabled as a result of injury or sickness and thereby totally incapable of engaging in any gainful activity or carry out any work, occupation, or profession to earn or obtain any wages, compensation, remuneration or profit. The second age group is 20 to 55 years. In this plan, the personal accident benefit is a low cost additional benefit that is paid in case the insured’s death or total and permanent disability is caused by an accident.

The third age group is from 45 years whole life participating or between 20 to55 years in all other plans. The waiver of premium protects the life insured from the burden of paying the premiums on his insurance in case they get totally disabled.

Term insurance can be purchase for many purposes, including providing financial security for your spouse, children’s education after your death, pay death expenses, donate the proceeds to a charitable organization, and so on. The top reason people usually buy life insurance is as an income replacement after death for their dependents.

There is a conversion clause in many of the term life insurance policies. This benefit allows you to change the insurance into a permanent policy whenever you want. However, each policy will differ on the limits of conversion. So when you are looking for a term life insurance policy you should watch this clause and take into account what you will need for your future.

The longer your policy term, the higher cash value to the name beneficiaries or the surviving insured due to the insurance money being paid and the cash value earned dividends, interests or both, for terms ranging from 1 to 30 years. However, any whole life insurance company or other institution can lock whole and term life insurance policies into the same monthly payment over the whole life of each policy.

You are also able to choose an option that requires a five-year waiting period prior to changing. A good option to have is one that allows you to change up until age seventy-five. When you are thinking of converting, then it is important to see what your permanent policy will include, how that will affect you and the future of your family. A more precise method of estimating the amount of life insurance coverage you should have is to use a life insurance calculator or worksheet. These may be very simple and require only a few questions to be answered.

It goes without saying that life insurance should be part and parcel of your long range planning, that is your financial planning. After all, we are talking about replacing your income. So, some serious thinking would have to be done before you seat with a professional, who after all will ask you these same questions. So take the time to identify your needs and then discuss with the experts to understand how these needs are going to be taken care off.

The majority of income protection insurance policies will begin to pay out once you had been off work for a continuous period which can be anywhere between one month and three months after the event and depending on the provider. The amount of time that a policy will pay can also vary but it is usually somewhere between one year and two years, again dependant on the provider.

The term life insurance is reasonably priced and can cost a lot less than permanent life insurance. They are more flexible in terms of contract you can avail this policy for the period you like and discontinue whenever you want. If you are confused then you can start with a shorter term and if you feel you want added coverage then you can shift to permanent life insurance. Whole life insurance provides you with a tax-deferred cash value for the investments during the term of the policy. Due to its investment nature, it demands for higher premiums. Insurance companies tend to be conservative to minimize the risks involved when investing your whole life insurance premiums.

Term life is taken out for children; it does not build any cash value and has no future benefit to the child later in life. The premium payments will be increased when the policy renews. Term offers only a death benefit and nothing more. There is no investment or cash value that builds in a term policy. Whole life insurance however, is commonly purchased for children to provide both burial expenses as well as, an investment opportunity for the child that will benefit them later on in life. Purchasing a Whole life policy for a child while they are young is very inexpensive in comparison to them buying it later on in life. Cash value begins building the end of the third year that the policy is in force.

The first annual premium of a whole life insurance policy is typically much higher than the annual premium for a term life insurance. Term life insurance is a life-only coverage policy, in which the benefits are obtained after your die. Therefore, if you are alive, there is no money for your beneficiaries. On the other hand, whole life insurance offer death benefits but also a savings account. This savings account will enable you to get money back if you are alive after the signed term, cashing the policy before your death, or borrowing money against the policy.

Term life policies often give you the option to choose your investment strategy if you can assume the risk and are knowledgeable with market investments. A typical scenario for a term life insurance policy would be when parents may buy one till their children graduate from college. This would ensure that in the event of your death, the expenses for education are covered by the insurance company. When it comes to life insurance, many people consider whole life insurance as a type of retirement plan; however, they are more likely forced saving with high commissions and fees, including up front hidden commissions up to 100% of the first year’s premium. On the other hand, premiums for term life insurance are cheaper for people in good health up to age 50 or so.

Insurance and assurance policies are two of the financial products most people misunderstand. They consider both as same with different names. Insurance policies cover the costs of an event that might happen while assurance policies will pay out on the occurrence of an event that is certain to happen. Insurance policies have a specific period and they will pay the money out only if the event happens with in the period.

Assurance policies will remain active always. For example, a life assurance policy will generally pay out upon death or upon reaching a particular age. An assurance policy has two elements, an insurance element and an investment element. Insurance element will pay out if, the person dies early. This can be used for meeting funeral and other day to day expenses. But then there is another payment made every year and this is the investment portion. The assurance company will invest a portion of the premium and when the customer reaches the policy maturity age they will pay them out.

It is possible to get the investment portion of the assurance policy early than the maturity period. Yet you will have to pay huge penalties to do so. Nowadays more and more providers are offering both types with mixed features so as to make them more attractive and consumer friendly. However the distinction is very important as you should have a clear idea of what facilities to look for and what facilities are provided with each cover etc to make sure you have chosen the right one. Before choosing, do ample research on various deals. There are many providers online and it is easy to make a comparison between them.

Term life insurance covers a specific period of time, generally from 1-30 years. It offers many advantages for the insurer as well. Big benefit is that it covers needs like loans and mortgage that a permanent policy does not cover. Due to the cheaper premiums, it allows the policy holder to invest the difference into other ideas or simply use the money for basic living arrangements if the owner isn’t as wealthy as others who can afford permanent.

Permanent insurance will give coverage through out the life span and doesn’t need any renewal. Heirs will be given a certain amount at the death of the insurer and the policy will stay alive as long as the premium is paid. This amount will not be the same as the amount that would be paid to your beneficiaries in the event of your death. Instead it would be the actual amount you have paid towards the policy plus any interest that amount might have amassed.

The premium will increase with rise in the age due to the increase in chances of death and as an individual gets older, he is expected to be in a career and so getting paid more, thus can afford more. Both permanent and temporary have various advantages and disadvantages. So depending on the insured individual, what benefits he wants, both types can be equally beneficial depending on what an individual may want.

There is only one mantra, as in the case with any deals, to find comprehensive deals- shopping around.

Look online for small, private providers.
For many small, private companies diabetes is not a big issue. Chronic cases only worry them and if you are not in such a stage you can expect to get good deals.

Keep your diabetes under control.
Diabetes is a disease that’s level can be reduced by undertaking certain precautionary steps. If you can get it in control, there is every possibility that you get affordable rates. If you’re under control and your doctor will attest to it, you may be able to negotiate a lower rate.

Try specialist quote sites.
Use a quote site to find the best deal for a diabetes patient. This will certainly help you as these sites are specialized and are familiar with such conditions.

Find an insurer that understands diabetes.
There are some specialist providers who will rearrange their policies with applicants. You will find better deals with such providers. Diabetes isn’t any more of a variable to them than a person’s age or gender.

Group your coverage.
This is a good option. If you have other insurance with the provider and your records are good, you can ask for a better deal. This is proved successful on many occasions.