Your mortgage is likely to be one of the biggest commitments of your life. This is why it is worth thinking about protecting your asset, incase you fall ill and become unable to pay for the roof over your head.
There are a range of protection options and they may be difficult to understand. The things you will want to protect for could include death, critical illness, or loss of income through accident or sickness. You will also want to consider that you adequately insure the buildings and contents.
Each policy need not cost a fortune; They are generally small monthly payments which give you piece of mind.
Life insurance gives you the comfort of knowing that your family will be provided for if you die. There are many different ways of being covered and we would suggest talking to a financial advisor to find the best solution for you.
When life insurance is linked to a mortgage, your family will ensure the roof over their head is paid for as they continue their lives.
Critical illness cover
Critical illness is designed to pay out a lump sum, should you fall ill and cannot continue to work. It can be bolted on to life cover or paid for as a separate policy. The lump sum could be used to pay for your mortgage or to perhaps alter your home if you need to change things for accessibility.
This policy will pay for your mortgage and some bills if you are off work due to sickness or because of an accident. Without this cover you would no doubt have to rely on state benefits which may not cover everything you need. This tax free payment is usually paid until you are fit enough to return to work.
Buildings and contents cover
Buildings and contents insurance will cover you in the event of fire, flooding or subsidence. Most mortgage lenders will insist that you take out this policy before they agree on lending you money.