May 23, 2021

Life insurance when you have taken out equity release on your residential property

Life insurance to cover equity release on your residential property

Our clients

Our clients were referred to us because they had taken out equity release on their property. They wanted to take out a life insurance policy that would pay out a lump sum if either partner was to pass away. This was so that they would not have to draw down on their loan.

The clients agreed that a sum assured of £40,000 would suit their requirements. We discussed whole of life cover that will pay out a lump sum whenever you pass away. However, the premium was unfortunately outside of their budget. This being the case, they opted for cover until Mrs reaches 90 and Mr is 87. The policy was required to purely protect each other. Their children were older and no longer dependent, so they decided a joint policy would be suitable.

Health Condition

One of the clients had diabetes and a few other health complications so a GP’s Report was required to enable the underwriters to assess their risk.

Our Process and advice

At Future Proof, we have access to specialist insurance companies that don’t deal directly with the public. These companies offer more specialised policies, designed to provide cover where other major providers can’t.

Our research process involves us contacting many insurers to find out the best possible outcome for our clients. Which avoids any nasty shocks later on during the underwriting process.

Would the insurer add a ‘loading’ to their standard premium? (this is an additional sum charged on top of their standard monthly premium to reflect their additional risk). Or, exclude a condition?

Might they decline the application? We want to avoid wasting time by making applications that may be declined.

We have up to date knowledge of the ever-changing landscape of underwriting for UK Providers. Future Proof is committed to thorough research so that you don’t have to. What’s more, our advice comes at no obligation and with no hidden costs.  You don’t pay us directly but we do get paid by the insurer if you decide to start a policy with them.


The clients obtained their cover for a monthly premium of £118.91. However, had they not have had health issues they would have obtained the cover on standard rates for £91.67 per month.

Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

All our case studies are based on actual client scenarios, many of which pre-date 2020. We are confident that the acceptance decision made by the insurers would still be offered, although it is likely that the rates will have changed. Your own circumstances will determine whether what amount will be payable by you and would be fully discussed with you before any plan is implemented.

For advice on equity release please click on the link: The Money Advice Service

If you’re thinking of taking out an equity release product, you should take financial advice from an independent financial adviser. All advisers recommending equity release schemes must have a specialist qualification. So, if equity release is the right choice for you, they’ll be able to suggest the plan that is most suited to your needs by researching all the products in the market.

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Next steps

Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.

Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget!

An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof

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Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer from a medical condition and concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

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The existence of a link to another website does not imply or express
endorsement of its provider, products or services by us or St. James’s Place.