Financial consequences of death
Thinking about death is not easy. It can help you understand the financial resources your dependants would have and the arrangements you want to make.
Who would be financially affected?
Consider who depends on your income or a shared budget. This may be a partner, children or others for whom you are responsible. Which costs would continue, which income would stop and which provisions already exist? An overview starts with those questions. The mortgage amount alone does not establish a household's needs.
Home, debts and existing provisions
A home may be an important part of the decision: could your dependants afford the costs, and would they want to stay there? Also review other commitments, own funds and any survivor benefits. Having a pension scheme does not necessarily mean the financial consequences are fully covered.
Legal arrangements concerning ownership, beneficiaries and inheritance may also need attention. Discuss these questions with the appropriate specialist; this page does not provide inheritance law or tax advice.
What does term life insurance do?
Under the policy, term life insurance may pay an amount if the insured person dies during the agreed period. The sum insured, term, beneficiaries and conditions need to suit the purpose. A level or decreasing amount may develop differently over time. The insurance does not automatically build up freely available savings; read what applies at the end of the term.
- Who is the payment intended for?
- Which need do you want to cover, and for how long?
- How does the sum insured develop?
- Which conditions, premium and beneficiary arrangements apply?
A personal decision
There is no fixed amount suitable for every family. Children's ages, a partner's income, debts and existing provisions can change the need. Application conditions and the insurer's assessment also matter. Do not assume term life insurance is always compulsory with a mortgage; review the terms of your actual financing and your own financial goal.
Review existing arrangements
Moving in together, marriage, separation, a birth or a mortgage change can be a reason to review existing insurance and beneficiaries. Do not simply adjust the premium without discussing the purpose again. RFD can explore your question with you and agree which services are needed. Read the Risk protection service comparison card for general information about the process.
Do not share medical information through general contact channels. Any necessary information should be submitted through the secure method agreed for that purpose. This explanation is general and does not confirm acceptance or payment.
Services and comparison documents
The service comparison document describes our financial services and the stated costs. We agree the services and costs for your enquiry with you personally.
Frequently asked questions
Is this insurance always compulsory with a mortgage?
That cannot be stated in general. Review the terms of your actual financing and discuss your dependants' needs separately.
What sum insured is appropriate?
This requires a personal overview of income, costs, debts, provisions and wishes for your dependants. This page does not provide a standard amount.
Do I automatically get money back at the end?
Do not assume so. Term life insurance and a savings product are different things; the policy determines what applies during and at the end of the term.
When should I review an existing policy?
A change in your family, relationship, income or mortgage can make a review worthwhile. Also check who is named as beneficiary and the purpose of the insurance.
This is general information, not personal insurance advice or confirmation of insurance cover. What is suitable and covered depends on your circumstances and the policy terms. Read the disclaimer.
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What would you like to discuss?
Have a question about your mortgage, insurance or finance? We are happy to help.