Mortgage Protection and Insurance
The range of mortgage protection products available in today’s market are designed to help individual’s meet their mortgage commitments in the event of long term illness, unemployment, critical illness or death.
Considering mortgage protection and insurance is a necessity if you fall into any of the following brackets:
- You have a partner
- You have children who are dependent on you
- You have any ageing relative’s dependent upon you for support
- Your pension or savings will not be enough to protect your dependents should you pass away
- You are single and do not have someone to help you pay your mortgage if necessary
Mortgage protection is something people tend not to like talking about yet is highly necessary. It offers peace of mind and we are happy to talk this through with you. If you have any queries on which insurance you require then please contact us directly and we can review your current insurances and guide you accordingly if changes need to be made. All of our reviews are free of charge. Get in contact and we will arrange a suitable appointment.
Ways to protect your insurance...
Mortgage Term Assurance
• A plan which aims to provide a tax free lump sum, if you die or have a terminal illness during the term you have chosen
Mortgage Decreasing Term Assurance
• A plan which aims to pay off the mortgage balance if you die during the term you have chosen.
Mortgage Critical Illness Cover
• A plan which is designed to pay out a tax free lump sum if during the term of the policy you are diagnosed with a terminal illness or one of the specified critical illnesses, and are eligible to claim.
Mortgage Decreasing Critical Illness Cover
• A plan which is designed to pay out a tax free lump sum if during the term of the policy you are diagnosed with a terminal illness or one of the specified critical illnesses, and are eligible to claim. The amount of cover decreases during the term of the policy designed to clear the mortgage balance.
Mortgage Payment Insurance
• A plan which is designed to provide you with a monthly benefit to help pay your mortgage if, due to illness, accident or unemployment (if selected), you are unable to work resulting in a loss of earnings
Life insurance can pay your dependants a lump sum or regular payments if you die.
• Term life insurance policies run for a fixed period of time. These kinds of policies only pay out if you die during the term of the policy. Often until the children reach a specific age. 18 or 21.
A whole-of-life policy
• Designed to pay out no matter when you die, as long as you keep up with your premium payments.
What isn't covered by life insurance
• Most policies have some exclusions (things they don't cover). For example, they may not pay out if you die due to drug or alcohol abuse, and you normally have to pay extra to be covered when you take part in extreme sports.
• If you have a health problem when you take out the policy, your insurance may exclude any cause of death related to that illness.
• If you fail to tell them of an existing medical condition the policy could be void on claiming.
Who doesn’t need life insurance?
• If you are single, or if your partner earns enough for your family to live on, you may not need life insurance. But, you may want to set aside enough money in savings to cover any funeral expenses.
• If you have dependants but have an employee package that includes ‘death in service’ benefits, you may not need additional life insurance.
Death in service pays out a lump sum if you die while working for the company. You would need to check to make sure the benefits are enough to cover your family’s needs – if it’s not enough, you can top up with a life insurance policy. But do bear in mind, if you stop working for that employer, perhaps through ill health, you may lose the death in service benefits and may not be able to take out life insurance at that time.
The younger you are the cheaper the insurance tends to be. You can always change the life assurance policies as your circumstances change, but it is always a good idea to have something in place. A lot of people will tell you, you need life assurance to get the mortgage. This is not true. No lenders insist on life assurance. The only insurance you need in place to buy a property is Buildings Insurance.