The Importance of Reviewing Life Insurance After Your Mortgage Capacity Report

After your mortgage capacity report has been completed and your financial separation finalized, it’s essential to review your life insurance policies to ensure they align with your new circumstances. Life insurance plays a crucial role in protecting your assets and loved ones from risks such as death, critical illness, or loss of income.

When couples first apply for a mortgage, it’s common to take out joint insurance policies. However, after a financial separation, it’s important to reassess these arrangements and consider setting up single protection policies. These new policies should:



• Reflect your new loan amount and financial obligations.
• Ensure that premiums are paid solely by you and are not linked to the other party.
• Allow you to set up a new trust for your loved ones, excluding the other party if desired, to reflect your updated priorities and circumstances.

Taking the time to review and update your life insurance ensures that you’re properly protected as you move forward independently. It’s an important step in securing your financial future and providing peace of mind for you and your loved ones.