A mortgage is a significant financial commitment which is why many of our clients seek mortgage payment protection, there to assist homeowners should you be met with a change in circumstances.
There are many mortgage payment protection plans available and our experienced advisers will talk to you about your priorities, your budget and your future plans to help ensure that you put the right protection in place.
If you take out life assurance, your next of kin will receive a lump sum should you die. The lump sum can be used to repay the mortgage and other debts. Equally, it can be used to generate replacement income for the household.
Family Income Benefit is also a life assurance plan but rather than receiving a lump sum, your next of kin would benefit from a monthly or annual payment through the term of the plan.
CRITICAL ILLNESS COVER
If you are diagnosed with a critical illness, your policy will pay out a lump sum to the next of kin. Many people use this money to repay the mortgage, debts, go on holiday to recuperate, make necessary changes to the home or replace income. There are limitations to critical illness policies and it is important to seek qualified advice so that you fully understand all the terms of the insurance.
If you cannot work due to a long-term illness, you may want to find cover that will provide your family with a regular income. Most people take out the policy to cover them until the point they plan to retire.
You can choose a deferred period, which means you decide when to claim, from one week to 12 months before you claim. The shorter the deferred period, the more expensive the cover will be. Payments will be made until your retirement age if you cannot return to work however you cannot cover your entire salary. Some companies offer a maximum of 50% of your earnings, some as much as 75%. The plans vary, so it is important that you seek professional advice to assess which is the most appropriate plan for you.
ACCIDENT, SICKNESS AND UNEMPLOYMENT COVER
As an alternative to paying for a long-term protection, this cover can be taken to pay the mortgage and associated costs for up to 12 months during a period of illness or redundancy. This type of policy is also available to solely cover unemployment and will pay a monthly amount in the event of a claim.
Although it is desirable to take out comprehensive cover, our advisers understand that your budget has to be allocated carefully, especially when committing to a new mortgage. We will discuss your priorities and ensure that you reach the best solutions for your needs.
To find out more, call our team today on 0161 929 8828.
Your home may be repossessed if you do not keep up repayments on your mortgage.
It is your responsibility to ensure you/your property are adequately protected and have sufficient and relevant insurance in place.
If you cancel an insurance contract you will not receive any money back or refund of premiums. They have no cash-in value.