SUPPORT WHEN YOU NEED IT MOST
Buying your new home can be so exciting. It is probably the biggest financial decision you will ever make. You assess your budget and how much you can afford to pay each month but you will probably be checking all these new mortgage costs against your current income. What happens if things change?
Put simply protection products are policies that are arranged to provide you and your family with either a lump sum or a regular income should you become seriously ill, lose your job, or in the event of your death.
We offer protection products from a selected panel of leading insurers covering life cover, critical illness, income protection and redundancy cover.
Life can throw up challenges, but they don’t have to hit you so hard if you protect yourself, and it doesn’t need to cost a fortune.
Protection and insurance for your basic mortgage needs should be reviewed when you buy your home. We have given you a list of the most popular types of insurance below and our adviser will discuss all these options with you at interview.
BUILDING AND CONTENTS
It is compulsory with all lenders that you have a building insurance policy in place. This protects you against fire, flooding etc. Contents cover protects your belongings for example furniture, clothes, TV’s etc. against damage or theft. It is wise to have these both covered on the same policy so in the event of a claim, it is all handled at the same time.
CRITICAL ILLNESS COVER
The great news is we are all living longer and surviving major illness. However, as we read every day, the Government no longer provides adequate support for you when you are ill and unable to work. Often you will recover from even a serious illness over a year or so, but can you keep up with the bills during this time? You don’t want to lose your home you have worked hard for, or have the extra financial stress, when a simple critical illness policy could have helped you.
Critical illness cover will provide a lump sum that you could use to pay off your mortgage if you were to suffer from one of the illnesses covered by the policy (For example some forms of cancer, heart attack or stroke). This lump sum would also help you and your family if you found yourselves short of money during your illness and give you some time to recover. Different insurance companies have different definitions of what illnesses they will cover. Some policies have cheaper premiums but cover fewer illnesses. Other policies cover a wider range of illness and have a slightly higher premium. It is very important that you seek guidance from us to make sure you have the correct critical illness cover.
INCOME PROTECTION COVER
There are two main types of income protection policies.
Accident, sickness and Unemployment policies will cover you for any of these things happening. This kind of insurance will provide a monthly amount if you were not able to work . This monthly amount could cover your mortgage payment and/or other bills after a deferred period. They tend to pay out for up to 12 or 24 month period after which time most clients will have returned to work.
Income protection policies also pay out a monthly payment when off work after a set deferred period. But these policies can pay out until the end of the mortgage or retirement age. The deferred period is usually the length of time your employer pays you sick pay, or the amount of time you could cope without financial assistance which is typically from 1 week up to 12 months; the longer the deferred period then the cheaper your policy will be.
Redundancy cover pays out a monthly amount if you were made redundant. This could pay your monthly mortgage payment and/or other bills after a specified deferred period. The length of time the redundancy cover typically pays out for is between one and two years and most clients will find a new job within this period.
This protection is almost always put in place for families, but is not so important for single clients with no dependent children. Life cover is usually arranged so that your mortgage will be paid off if you die and it can also be used to provide money to your family so they can get on their feet after you have passed away.
This is one of the cheapest forms of protection to set up and also one of the most popular with clients.