When Should Landlords Get Life Insurance?

Have you been putting off the life insurance question because you’ve got plenty of time to sort that out later?

Well, here’s the thing: none of us actually know when we’re going to die. If you’re married, if you have kids, what would happen to them once you’re gone? 

Only 30% of people in the UK have life insurance so it’s pretty likely that you don’t. And, if you don’t have life insurance, you probably don’t have critical illness cover or income protection, so you and your family could basically have no support should the worst happen.

Mashroom Mortgages’ Kirsty Primmer goes through:

  • The best time to get life insurance
  • How marriage may affect it
  • How having children may affect it

When is the right time to get life insurance?

We would advise that you get life insurance as soon as possible once you have a property.

Life insurance is a policy that pays out upon death, but it can also pay out upon terminal illness diagnosis. Some insurers will pay out whilst you’re still alive if you’re expected to pass away within 12 months, which would give you a lot of peace of mind.

You’ll be safe in the knowledge that your family doesn’t have the burden of the mortgage repayments and can take all the income from the rent. This financial support will not take the place of the emotional support you may need, but it would really make life a lot simpler.

Many insurers today also provide bereavement counselling and standard counselling, as well as lots of other things as part of a wider protection package. 

How often should a landlord update their life insurance policy?

We believe that it’s best to update your policy every time you update your portfolio, so that you have that reassurance that your portfolio is going to go to the people you want it to, without the burden of a mortgage.

Life changes like marriage can affect life insurance. It won’t change whether or not you can get it or the questions you’re asked, but it can provide so much more to your family.

Additional products can be added to your policy with some insurers, such as Global Treatment for instance. This add on would pay for you and your children and your partner to go and get the best treatment in the world, should they be diagnosed with something like cancer or need neurosurgery or live organ transplant.

Does having children affect your ability to get life insurance?

Getting married and having children doesn’t affect you getting life insurance at all, there’s no question to ask about whether you have children on a medical questionnaire or anything like that.

But if you have children, your priorities in life have likely shifted and you are looking for the best ways to protect your children and safeguard their future. So once you have children, that’s a good time to get in touch with your advisor and take another look at your policy to make sure it’s still doing what you need it to.

It’s never too late to start a policy, so give us a call and find out what we can do for you! 

Tenancy deposit
Money shield
Local heroes
Approved code
Property ombudsman
Open banking
Mashroom is an appointed representative of Adelphi Insurance Brokers Ltd. Adelphi Insurance Brokers Ltd is authorised and regulated by the Financial Conduct Authority (FCA). Their Financial Services Register number is 594620, with permitted business activities being introducing, advising, arranging, dealing as agent, assisting in the administration and performance of general insurance contracts and credit broking in relation to insurance instalment facilities. You may check this on the Financial Services Register by visiting the FCA’s website, register.fca.org.uk or by contacting the FCA on 0800 111 6768