# Life Insurance Calculator for Buy to Let Landlords

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It won’t happen to me are words too often muttered without any hard evidence to back it up! As a result we have designed a calculator based on government data to help you understand the real risk of the worst happening once and for all, whether good or bad!

 We have designed this calculator using data from the Office for National Statistics to help you understand the risk of death during the term of your mortgage. Simply enter your details below and find out… Current Age years Length of Mortgage years Gender –MaleFemale

if (isset(\$_POST[‘currentage’])) \$currentage = \$_POST[‘currentage’];
if (isset(\$_POST[‘mortgagelength’])) \$mortgagelength = \$_POST[‘mortgagelength’];
if (isset(\$_POST[‘gender’])) \$gender = \$_POST[‘gender’];
\$ceaseage = \$currentage + \$mortgagelength;

\$age = array(
array(‘100000’, ‘100000’),
array(‘99501’, ‘99586’),
array(‘99467’, ‘99557’),
array(‘99449’, ‘99539’),
array(‘99434’, ‘99523’),
array(‘99424’, ‘99511’),
array(‘99412’, ‘99502’),
array(‘99401’, ‘99494’),
array(‘99392’, ‘99485’),
array(‘99381’, ‘99476’),
array(‘99370’, ‘99466’),
array(‘99361’, ‘99459’),
array(‘99351’, ‘99450’),
array(‘99340’, ‘99441’),
array(‘99328’, ‘99430’),
array(‘99314’, ‘99418’),
array(‘99292’, ‘99402’),
array(‘99263’, ‘99384’),
array(‘99216’, ‘99362’),
array(‘99160’, ‘99337’),
array(‘99103’, ‘99311’),
array(‘99041’, ‘99287’),
array(‘98978’, ‘99263’),
array(‘98918’, ‘99240’),
array(‘98853’, ‘99215’),
array(‘98789’, ‘99190’),
array(‘98724’, ‘99162’),
array(‘98652’, ‘99131’),
array(‘98579’, ‘99097’),
array(‘98499’, ‘99061’),
array(‘98416’, ‘99024’),
array(‘98325’, ‘98982’),
array(‘98235’, ‘98940’),
array(‘98140’, ‘98890’),
array(‘98039’, ‘98838’),
array(‘97925’, ‘98780’),
array(‘97802’, ‘98718’),
array(‘97680’, ‘98654’),
array(‘97551’, ‘98581’),
array(‘97406’, ‘98501’),
array(‘97255’, ‘98419’),
array(‘97092’, ‘98323’),
array(‘96919’, ‘98218’),
array(‘96740’, ‘98110’),
array(‘96547’, ‘97990’),
array(‘96334’, ‘97856’),
array(‘96102’, ‘97713’),
array(‘95857’, ‘97557’),
array(‘95596’, ‘97390’),
array(‘95315’, ‘97206’),
array(‘95014’, ‘97005’),
array(‘94679’, ‘96772’),
array(‘94313’, ‘96530’),
array(‘93913’, ‘96257’),
array(‘93479’, ‘95964’),
array(‘93011’, ‘95628’),
array(‘92480’, ‘95284’),
array(‘91904’, ‘94905’),
array(‘91286’, ‘94496’),
array(‘90621’, ‘94054’),
array(‘89902’, ‘93565’),
array(‘89118’, ‘93039’),
array(‘88291’, ‘92467’),
array(‘87395’, ‘91866’),
array(‘86396’, ‘91201’),
array(‘85304’, ‘90469’),
array(‘84135’, ‘89682’),
array(‘82847’, ‘88821’),
array(‘81469’, ‘87896’),
array(‘79941’, ‘86870’),
array(‘78297’, ‘85753’),
array(‘76566’, ‘84513’),
array(‘74695’, ‘83187’),
array(‘72672’, ‘81742’),
array(‘70496’, ‘80146’),
array(‘68192’, ‘78405’),
array(‘65697’, ‘76518’),
array(‘63022’, ‘74429’),
array(‘60184’, ‘72172’),
array(‘57170’, ‘69683’),
array(‘53982’, ‘66960’),
array(‘50580’, ‘64003’),
array(‘47034’, ‘60822’),
array(‘43395’, ‘57438’),
array(‘39709’, ‘53827’),
array(‘35895’, ‘50036’),
array(‘32062’, ‘46071’),
array(‘28275’, ‘41975’),
array(‘24627’, ‘37794’),
array(‘21166’, ‘33555’),
array(‘18080’, ‘29527’),
array(‘15257’, ‘25509’),
array(‘12707’, ‘21739’),
array(‘10321’, ‘18039’),
array(‘8161’, ‘14632’),
array(‘6299’, ‘11589’),
array(‘4732’, ‘8970’),
array(‘3473’, ‘6766’),
array(‘2477’, ‘4984’),
array(‘1727’, ‘3549’),);

if (\$gender == “male”)
{(\$percentdeath = (\$age[\$currentage][0]-\$age[\$ceaseage][0])*100/\$age[\$currentage][0]);
\$roundpercentdeath = round(\$percentdeath,2).”%”;
\$roundchancedeath = round(1/(\$percentdeath/100));
}
elseif (\$gender == “female”)
{(\$percentdeath = (\$age[\$currentage][1]-\$age[\$ceaseage][1])*100/\$age[\$currentage][1]);
\$roundpercentdeath = round(\$percentdeath,2).”%”;
\$roundchancedeath = round(1/(\$percentdeath/100));
}

if (\$mortgagelength!=””)
{
echo ‘

 You are a ‘.\$currentage.’ year old ‘.\$gender.’.
Your mortgage is ‘.\$mortgagelength.’ years long and ends when you are ‘.\$ceaseage.’ years old.
There is a ‘.\$roundpercentdeath.’ or 1 in ‘.\$roundchancedeath.’ chance of you passing away before the end of your mortgage.
‘;
if (\$roundchancedeath < 30)
{
for (\$j = 0; \$j < (\$roundchancedeath-1); ++\$j)
{
echo ‘‘;
}}
elseif (\$roundchancedeath > 30)
{
for (\$j = 0; \$j < 31; ++\$j)
{
echo ‘‘;
}
echo ‘‘;};
echo ‘

‘;
}
else
{
echo ‘

‘;
};

?>

## Step 2. What are your financial risks?

Now knowing your chances of death it is also worth knowing the financial burden you could leave your loved ones should something happen. The calculator below should help you to start thinking about the level of cover that would be required to help your beneficiaries through such difficult times.

The figure provided below is for illustrative purposes only and does not constitute financial advice, please speak to a financial adviser to ensure you have adequate financial protection in place.

 We have designed this calculator to help you better understand your own outstanding risks based on the value of your property portfolio and any outstanding mortgages. Conservative Estimate of Property Values £

Mortgages Outstanding

£
Rental Income
£   per month

if (isset(\$_POST[‘propertyvalue’])) \$propertyvalue = \$_POST[‘propertyvalue’];
if (isset(\$_POST[‘mortgageoutstanding’])) \$mortgageoutstanding = \$_POST[‘mortgageoutstanding’];
if (isset(\$_POST[‘rentalincome’])) \$rentalincome = \$_POST[‘rentalincome’];

\$calculationa = (\$mortgageoutstanding – (\$propertyvalue*.7))+(0.05*\$propertyvalue);
\$calculationb = \$mortgageoutstanding – ((\$rentalincome*12)/.13)+(0.05*\$propertyvalue);
if (\$propertyvalue == “”)
{}
elseif((\$calculationa \$yourriskresult = ‘

 Given your outstanding mortgage is significantly lower than the estimated value of your property portfolio it is unlikely your beneficiaries would require a significant level of life insurance to refinance your portfolio.

You may want to at least consider covering the associated costs of refinancing which could be in the region of £’.number_format(round((.05*\$propertyvalue),2)).’.

‘;
elseif (\$calculationa > \$calculationb)
{\$yourriskresult = ‘

 Your beneficiaries are likely to need at least £’.number_format(round(\$calculationa,2)).’ to refinance your property portfolio. Based on your inputs and a number of assumptions with regards to Minimum Interest Cover (130%), Maximum Loan-to-Value (70%) and Payable Interest Rate (10%) there would be a minimum sum which would be required by your beneficiaries to refinance your portfolio should the worst happen. This figure should be discussed with a financial adviser however we are able to provide a rough estimate above.

‘;
\$covertransfer = round(\$calculationa,0);
}
else
{\$yourriskresult = ‘

 Your beneficiaries are likely to need at least £’.number_format(round(\$calculationb,2)).’ to refinance your property portfolio. Based on your inputs and a number of assumptions with regards to Minimum Interest Cover (130%), Maximum Loan-to-Value (70%) and Payable Interest Rate (10%) there would be a minimum sum which would be required by your beneficiaries to refinance your portfolio should the worst happen. This figure is for illustrative purposes only. to ensure a sufficient level of cover you should discuss your personal circumstances with a financial adviser.

‘;
\$covertransfer = round(\$calculationb,0);
}

echo \$yourriskresult;

?>

## Step 3. Get a Life Insurance Quote

We have carefully chosen a partner to ensure you are provided with the necessary guidance to ensure your mortgage life insurance policy fits your needs and you are getting the most competitive terms available. Simply fill out your details below and one of the Experts from Drewberry Insurance will give you a call shortly.

 Length of Cover years Level of cover £ Title –MrMrsMissMsDr Forname Surname Date of birth dd/mm/yyyy Telephone Email address
 Any information provided for this mortgage insurance quote will be treated as strictly private and confidential under the Data Protection Act (1998)

Drewberry Limited is an Appointed Representative of Chase Templeton Limited which is authorised and regulated by the Financial Services Authority. Firm Number 311612.

Our Life Insurance Calculator for Buy to Let Landlords has been designed by Mark Alexander (founder of Property118.com) and Drewberry Insurance.

## Do I Need Life Insurance?

Life insurance is designed to pay out a lump sum to your beneficiaries should the worst happen. For buy to let landlords setting up an appropriate life insurance policy to protect your financial risks is more important than ever, just think of what could be left behind for your loved ones to sort out and cover financially should something happen.

For some really great information on buy to let landlords and life insurance see Mark’s posts – ‘Should buy to let landlords buy life insurance?’ and What happens to mortgages when a landlord dies?