Just a short post to announce that you can now get live online quotes direct from our main site for Life Insurance, Permanent Health Insurance, Mortgage Protection and Critical Illness Insurance direct from the Rightmortgageadvice.co.uk website.
To get an instant quote today follow this link for Life Insurance Quotes.
If you have life insurance cover which was arranged prior to a marriage, or before increasing your mortgage value or mortgage term it may need to be reviewed. It’s crucial to ensure that your protection requirements are reviewed regularly to ensure that it is arranged in the most tax efficient manner and will benefit the people you intended it to.
To discuss protection requirements and products available call one of mortgage protection advisors on 08454594490 for advice.
Question; I have been advised that my life insurance policy should be written into a trust, why is this?
There are several reasons why certain life insurance or assurance policies should be written into trust and generally they are to do with avoiding tax liabilities and or ensuring that the proceeds of a policy will reach the intended recipient.
About two thirds of people in the UK don’t have a valid will and testament and die “intestate” which is the term for an estate which does not have a valid will in place to determine where and how the estate proceeds will be divided up (sometimes there is a will in place which is no longer accurate and can be invalid for this reason too).
In this case there are rules which govern how the estate is split which can often leave the proceeds of a life policy being paid out to someone who is not the intended recipient.
A good example is a couple who are unmarried and have arranged a life policy on the life of the main breadwinner to repay the mortgage in the event of death, in this case if there were no valid will in place the proceeds of the policy would likely be passed on to the deceased’s family rather than the surviving partner which could include children from a previous marriage or the deceased’s parents for example.
In another scenario a life policy which was written to pay out to a couple’s children on the last survivors death in order to cover inheritance tax liabilities would itself become part of the deceased’s estate, and therefore liable to inheritance tax itself if it were not written into trust.
The rules around taxation and particularly the taxation of trusts change regularly and this is one of the reasons why mortgage advisors will recommend a regular review of your circumstances. A policy once written into trust may well one day be better off outside of it and therefore it’s important to regularly check that existing provisions are still arranged in the most tax efficient and sensible manner possible.
If you have a life insurance policy which you think may need to be placed into trust or to speak further to a mortgage advisor call 0845 4594490 for independent advice.
In Q & A we take a look at some of the questions mortgage advisors answer on a regular basis.
Question; I have been told it’s difficult to arrange a mortgage on a freehold flat, why is this?
In a freehold you are responsible for the maintenance and insurance of the building and own the land on which it is built, which in the case of a normal house is a good thing.
However in the case of a flat this means that there is no clear definition around who is responsible for which parts of the building. Your roof is your neighbour’s floor and your floor is someone else’s roof.
Imagine then that your upstairs neighbour leaves his bath running and your roof collapses, whose responsibility is this now? If your neighbour has no insurance then it could get pretty messy and that’s why as a mortgage lender it’s a bit of a no go area.
This problem can also occur with what’s known as a flying freehold, this is a maisonette or house where some of the property extends over or under another property on a freehold tenure.
If you are in need of a mortgage on such a property they may be steps you can take to go about getting one so call 0845 4594490 to speak to a mortgage advisor for specific advice on the area.
Question; What’s the difference between life insurance and life assurance?
Assurance refers to cover for an event that will definitely happen or that is inevitable, so in the case of life assurance this means that the policy will always pay out if payments are continued because it will run for the whole of your life and inevitably will therefore pay out when you pass away.
Life Assurance is therefore an investment, whereas life insurance will run for a specific term and will only pay out in the event that you pass away within the term. Should you survive the term there will be no return on the premiums however this will obviously be reflected in the price.
Just a quick post today to say our website www.rightmortgageadvice.co.uk has recenly been re-launched including lots of new content, online quote forms, mortgage calcultors and much more.
Theres lots of new information about other areas of our business including Commercial Insurance, Key Persons’ Insurance, Shareholder & Partnership Protection plans, our conveyancing partners, Life Insurance, Critical Illness cover, Permanent Health Insurance, Home Insurance and much more so if you haven’t stopped by recently drop in and take a fresh look.