Buying Life Insurance with a Mortgage: What are the Options?

After the hectic end to the year and a very intense period of eating and lazing around, January rings the alarm bell for everyone to get back and face the real world. Amongst other things, many choose the New Year as a fresh starting point for something bigger, and becoming a homeowner can be one of those smart and exciting prospects.

However, with big investments come big responsibilities so if you decide to commit to a mortgage, then purchasing life insurance at the same time is one way of alleviating those fears and can make life easier. Not all policies are created equal, so the best way to find the best policy with affordable premiums is to shop around. Being aware of what is available means you can make an informed decision, which is very important when you’ll be paying out for your policy for many years to come.

Here are some of the options:

Direct from Insurers

Just because this is the conventional way it doesn’t mean it is not valid anymore, by approaching insurers directly it is often possible to find the best deals. Moreover, the digital era has allowed this approach to be much simpler than it used to be. Beagle Street for example is a life insurance provider who offers insurance that can be completed online in under 10 minutes, so you could purchase your policy directly without leaving the comforts of your home.

It is worth noting that the big, general insurance companies can prove the easier ones to find online as they have greater opportunity of visibility with the greater number of products they offer despite many of them not being a specialist life insurer per se. This may affect how personalised your life insurance is, based on a specific personal circumstance for example. Secondly, the market can be full of jargon. At Beagle Street we created a jargon buster for simple language, but no matter who you go with you should ensure you fully understand what you are paying for.

Being a specialist life insurance provider, the option of a more personalized policy is down to you.

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Comparison sites

Comparison sites will allow you to filter your choices online and they can be very useful to find the cheaper of premiums available. However, cheap doesn’t always mean best value so always check what you are getting before signing up with an insurer.

Banks and credit card companies

Banks and credit card companies might include life insurance with the mortgage options they offer and you can buy everything as a single package. Although a very straightforward option, it can be a rushed decision whereby the homeowner is already committing to pay a large monthly sum for their mortgage and so the additional cost of life insurance looks cheap. By only having the one option presented, the homeowner is unable to see if this life insurance policy covers them for everything they need, or even if it covers them for too much, meaning the homeowner could be paying more than they need to.

Life insurance is a long-term commitment to safeguard your loved ones, so it’s worth taking some extra time to make sure you are with the best life insurance provider for your circumstances.

It is always good practice to read up before you buy anything, this is also the case for life insurance. Beagle Street has an extensive Guides section where you can find out all the nitty gritty on the process of buying a life insurance policy.

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