We want to make sure that you are aware of the various insurance and protection policies that are available to you. We offer comprehensive cover through a panel of insurers with excellent reputations for competitive pricing and excellent customer service.
We would encourage you to fully review the options that we present to you and can tailor any policy to meet your individual demands and needs.
Please contact us on 0845 658 6060 or complete our online enquiry form if you have any questions or would like us to provide you with a personalised illustration.
You can download this Insurance Guide as an Adobe .pdf
A summary of the main policies available is listed below and we will be happy to discuss these in more detail with you: -
Level Term Insurance
Level Term Insurance is designed to provide a fixed amount of life insurance for a fixed term of years.
The premiums are determined at outset and are usually guaranteed for the full term of the policy, provided premiums are paid when due. Reviewable premium plans are available, but are not widely used as the premiums can increase dramatically during the term of the policy.
Level Term Insurance is traditionally used for family protection needs and/or to cover Interest Only mortgages.
There is an option to index link whereby the amount of cover rises each year prior to a claim, usually in line with either National Average Earnings or with the Retail Price Index.
Mortgage Protection Insurance
Mortgage Protection Insurance (also known as Decreasing Term Insurance) is designed to repay the outstanding balance of a repayment mortgage in the event of a claim. A repayment mortgage is a mortgage loan where each month the interest due and some capital is repaid. During the early years relatively little of the loan is repaid each month with larger amounts repaid later in the term.
The Mortgage Protection premiums are determined at outset and are usually guaranteed for the term of the policy. Reviewable premium plans are available, but again these are not widely used as the premiums can increase dramatically during the term of the policy.
Terminal Illness Cover
This benefit is included almost without exception free of charge on all life insurance and/or critical illness policies.
Terminal Illness Cover pays out the sum assured immediately (instead of on death or critical illness) if the life assured is diagnosed as being terminally ill, with a life expectancy of less than 12 months typically.
This cover does not usually apply during the last 12-18 months of the period of cover.
Critical Illness Cover
The aim is to provide a guaranteed lump sum (or income if provided within a Family Income Benefit policy) if the life assured, during the period of cover, is diagnosed as having one of a number of specified critical illnesses covered by the policy.
A list of the typical illnesses that are covered under this benefit is available on our Critical Illness Cover Definitions guide.
For a successful claim to be paid for Critical Illness Cover the life assured has to live for a survival period (usually around 14 to 28 days) following the diagnosis.
Children`s Benefit
Most critical illness plans include a provision to pay out some benefits if the life assured`s natural, legally adopted (and sometimes step) children are diagnosed with a critical illness.
Total and Permanent Disability
When a Critical Illness Cover or Life with Critical Illness Cover plan is arranged, this will usually include Total Permanent Disability cover also.
When the life office pays a claim for Total Permanent Disability will depend on the "definition of disability" on the plan. The life office will decide which definition applies when the plan is underwritten at outset.
The definition of disability the life assured receives will depend on your health, whether you are working and if so, your occupation.
Family Income Benefit
Family Income Benefit is a Term Life Insurance product that, as the name suggests, is designed to provide an income to dependants in the event of a claim, rather than a cash lump sum.
The sum assured is specified as an annual income. In the event of a claim the sum assured per annum is then payable from the date of claim to the policy maturity date. Payments can be monthly, quarterly or annually. Income payments are, in fact, simply instalments of a lump sum (sum assured) and as such are not liable to income tax.
Many companies will allow the income to be exchanged for a cash lump sum at claim if required.
Income Protection
Income Protection Insurance is designed to replace lost income during periods of incapacity. Statistically customers are much more likely to suffer a serious illness that prevents them from working than they are to die before they retire. Income Protection is therefore possibly likely to be of greater use to them than death insurance.
Income Protection is designed to pay the policyholder a tax free income until the policyholder either recovers sufficiently to return to work, or the plan matures. This could mean the insurer is paying an income for well over 20 years in a worst case scenario.
Payment Protection Insurance and Accident Sickness & Unemployment cover
Payment Protection Insurance and Accident Sickness & Unemployment cover (ASU) differ significantly from Income Protection as they are specifically designed to protect the monthly repayment costs on a mortgage or loan, as opposed to providing a replacement income for the family.
Payment Protection Insurance and ASU generally only pay benefits for a fixed term of usually 12 months or 24 months. The deferred periods are also usually fixed.
For ASU policies underwriting is carried out at claim rather than during the application process, so some customers who thought they had cover may find they don`t because it could be described by the insurer as a "pre-existing" condition.
Payment Protection Insurance and ASU do have their uses for occupations that are un-insurable at affordable premium rates using Income Protection policies and for providing Unemployment Cover, which is generally a short term insurance need.
Waiver of Premium
Waiver of Premium is an additional charge option that protects the monthly life insurance premium in the event that the policyholder is unable to work, and hence unable to keep up the premium payments on their policy.
Practically this means Waiver of Premium is designed to protect the insurance in the period where the policyholder might be most at risk, in the period of a sustained illness.
Home Insurance
Buildings Insurance is compulsory for all mortgage applicants, as it will reinstate your property to its original state in the event of a claim. When buying a leasehold property your buildings will be insured by the freeholding company, to whom you would normally make a contribution towards the premium.
Contents Insurance is optional and provides cover for items that do not fall into the category of "fixtures and fittings", for example furniture, clothing and electrical appliances.
THE PRODUCTS DETAILED ABOVE ARE NOT INVESTMENTS AND HAVE NO CASH-IN VALUE AT ANY TIME.
All of these policies have benefits and drawbacks. Drawbacks can include exclusions and limits to the amount of cover. We will discuss these with you before we make a recommendation.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
IMPORTANT - Please download and print our Initial Disclosure Document (IDD)
Complete Mortgages is a trading name of Complete Mortgages Limited. Registered in England & Wales 05537384. Registered Office Wey Court West, Union Road, Farnham, Surrey GU9 7PT.
Complete Mortgages Limited is an Appointed Representative of Network Data Ltd, which is authorised and regulated by the Financial Services Authority. Network Data Ltd is entered on the FSA Register (http://www.fsa.gov.uk) under FSA reference 300391.
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
