At the moment, we only offer single plans insuring one person’s life. However, if you want insurance for your other half, then you could always encourage them to take out a DeadHappy plan too. They do have to be human though.
At the moment, unfortunately you can’t change your payout amount of an existing life insurance policy.
This is one of the things we think is really bad about life insurance and we’re trying our hardest to improve it.
We’ve managed to agree with our insurer a way to do this and we’re currently working on it, but we’re just not quite there yet….
In the meantime, perhaps drop us a line at [email protected] and we’ll see if we can help you in any way.
We are not authorised to give financial advice, so this is not really something we can directly help you with. In fact, we’re not really convinced that financial advice is even relevant in this situation.
We believe that a better and more relevant question is: What do you want to happen when you die?
Our Deathwishes are designed to help you answer this very personal question, and through answering this question, help you to get to a payout amount that you’re happy with, because it’s based on your own individual wishes.
Our maximum payout is currently £350k. If you want an insurance plan for more than this, unfortunately, we can’t currently help you. We are planning on increasing this in the future though, so perhaps bear us in mind for next time.
If you’re desperate to become DeadHappy now though, here’s a few tips for you:
- If you have a significant other (or perhaps more than one, we won’t judge) in your life, you could always persuade them to take out a DeadHappy plan too and increase your family’s total payout.
- Not all deathwishes need to have a value attached to them, and we’ll soon be adding the ability to create deathwishes without a monetary value. Things like ‘I want my wife to become a nun’ don’t necessarily need funding with life insurance and will soon become possible (disclaimer: we can’t guarantee that this will actually happen if you do die).
- As you’re such a high roller, perhaps you should think about buying your own island, flying round the world in a balloon or funding research into commercial space travel.
There’s only two certainties in life, death and taxes. But is there a way you can legally pay less inheritance tax?
Putting a policy in trust can be a really beneficial thing if that’s what you’re considering, particularly if you’re pretty minted and the tax man is keen on taking a fair chunk of that when you die.
Unfortunately, the process for that is still a bit difficult, and requires physical forms to be filled out, with actual signatures and witnesses and a whole lot of legal gumph.
Whilst we’re really keen to try and change this to make it much easier in the future, we’re still working on it, and it’s going to take a bit more time. For now, we’re afraid we can only point you in the direction of your local solicitor for legal advice on this one.
Mortgages eh, who needs ‘em?
Turns out most of us, if you don’t want to pay rent or live with your parents for the rest of your life.
The word mortgage literally means ‘dead pledge’ – from the Latin mort meaning ‘dead’ + gage meaning ‘pledge’. It’s a commitment that finishes either when the debt is paid off or the payment fails. NOT when the person with the debt dies. That fiddly detail is an important one when it comes to looking at mortgages and life insurance.
You can take a lot of things to the grave..
…but mortgages aren’t one of them. Despite what some might think, your mortgage debt doesn’t shuffle off with you when you die. The truth is, if no one inherits the property to pick up the mortgage bills, your estate or the property itself will be sold off to cover the outstanding debt.
No family needs that stress when a loved one dies, which is why many people choose to cover their mortgage debt with life insurance.
So do I NEED life insurance to get a mortgage?
Will mortgage providers refuse to cough up the cash if you’re not insured? Nope.
The vast majority of banks, building societies and other mortgage providers will gladly lend to you even if you don’t have life insurance cover, as long as you meet all the other financial requirements. So nope, life insurance is probably not required. They more likely will ask you to take out buildings insurance – that is to cover the house from catastrophe such as fire, flood and other biblical stuff, but that’s not the same as insuring your life. Here they’re asking you to insure the asset (the house).
Upsell me baby
That said, many mortgage providers and financial advisors may suggest you consider a variety of financial products such as payment protection, critical illness, income protection (and there’s more) when you take out a mortgage, it’s a big commitment after all.
Let’s face it, the bank, building society or provider already has your property as collateral if you die or are unable to repay the debt for whatever reason. Died without life insurance? They’re sorted either way. Your dependents, on the other hand, probably won’t be so chuffed.
So that’s the lenders covered, but what does the law have to say on the matter?
The UK actually has no laws, codes or decrees compelling you to get life insurance before you can be approved for a mortgage or any other type of loan.
Unlike with cars, where you have to insure it before you start burning rubber, with mortgages, you just need to prove to the lender that you have the income to meet the repayments each month.
So, as well as no mortgage policy requirement, there’s also no legal obligation either. Which means legally, no you don’t HAVE to take out life insurance to get a mortgage.
The sensible choice
Sensible isn’t cool. Sensible doesn’t take you on adventures. But while there’s nothing compelling you to take out life insurance – for a mortgage or for any other reason – it makes a lot of sense to get some financial protection in place.
A mortgage is likely to be the biggest debt you’ll ever owe. Which means it could also be the biggest debt you leave behind if you die before paying off the last doorknob.
If you have children, a partner or anyone else who depends on you to keep the roof over their head, it’s a no brainer. It’s a good question to ask yourself ‘When should I think about getting Life Insurance‘.
Even if your mortgage boasts your name and your partner’s name, chances are it was granted based on your joint income. So you need to seriously ask yourself, if one of you dies, would the other end up in a financial pickle if the mortgage wasn’t covered.
Having life insurance in place can give you and your loved ones peace of mind knowing your debts will be covered when you’re gone.
A word to the wise
Top tip: you might struggle to find anyone who won’t recommend you take out life insurance to cover your mortgage. So make sure you don’t rush into anything.
Some cheeky mortgage providers may even twist your arm into purchasing their or their partner’s life insurance when you take out a mortgage. This can end up in people paying extortionate life insurance costs, and it may even constitute as mis-selling.
If you’re worried that you’ve been mis-sold life insurance with your mortgage, talk to the kind folk over at the Financial Ombudsman Service.
A deathwish come true
If you want to protect your mortgage, don’t get stitched up with expensive life insurance. At DeadHappy, we offer cheaper, quicker and better life insurance plans. With our unique deathwishes, you can make sure you’ve covered your mortgage, your funeral, charity donation, a luxury holiday for your friends and family or most importantly, whatever is most important to you.