Protection for families of property investors

With growing and easier access to BTL mortgage funds comes the inevitable increase in borrowing, or as I like to call it … debt.

BTL is the generic term, of course, for property investment, and for many people investing relies on having the right ‘debt’ in place to make those acquisitions and investments.

Many investors fit this profile;

• married
• own one or more properties in sole name only
• enjoys / relies on rental income
• watches equity growth with satisfaction over medium to long term period of time
• benefits from viable rates of mortgage interest charge

But, what if …..?

And the biggest what if of all is ….. what if a married, yet sole owner of mortgaged property(ies) dies, did that property owner know that their properties, rental income, capital growth and therefore all of their, hard earned ‘wealth’ which they have worked so diligently for over many years, could simply be ‘repossessed’ by the lenders, and their surviving family could lose out substantially?

Unfair?  Maybe.  True?  Definitely.

If, in a very typical situation, the sole names owner of the BTL mortgaged property(ies) does NOT have life assurance to cover the debt, this is an absolute reality as per a per the research carried out and presented here

That article was written nearly a year ago … but unfortunately not all BTL borrowers review ‘asset protection / family financial security’ as often as they review mortgage interest rates.

My suggestion; ask a whole of market life insurance adviser to review the BTL cover options.

It costs absolutely nothing to review or quote or apply or buy.

Buying life cover could actually be the very best investment a BTL borrower could make for their family.

Example quote

Male, age next birthday 45, non smoker, £250,000 level term assurance, 20 year term

The cost (with guaranteed rates)?

…… equivalent to £6.56 per week.

It is highly unlikely that £6.56 is a large proportion of the rental income is it?

Of course all life insurance rates are based on age, health, amount of cover, length of term etc., however whatever the cost (especially when compared to asset and income wealth) I have never spoken with a survivor who told me it was too expensive.

Related articles

Should buy to let landlords buy life insurance?

What happens to mortgages when a landlord dies?

Barry’s story – it could have been you!

Why up to 40% of your life insurance payout could end up in the hands of the tax man.

Financial Advice – how do you pick an adviser?