MORTGAGE INSURANCE

Insurances

Most of us are aware there are policies available to protect our families. However, with so many types of policies available it can be hard to know which one is right for your circumstances and it can be hard to know which providers offer the best value for money. It can be easy to become overwhelmed by the options and costs. Putting off taking insurance could jeopardise your family’s financial future should the worst happen so we are available to help.

We offer a full, no obligation insurance review. Once we’ve agreed on the most suitable insurance for your needs and budget, we will submit the application to the provider on your behalf and provide regular updates to you as the application progresses with the insurer. We also maintain copies of your insurances so we can help you with your policy in the future.

We will:

  1. Review your circumstances
  2. Make a recommendation
  3. Submit the application
  4. Manage your application

Life Cover

What is does

Life cover pays out a lump sum if the person insured dies. you normally take life cover for a set number of years. You agree the term of the policy at the outset, usually between 10 and 25 years. Most people tailor their policy to ensure that their financial commitments would be met in the event of their death, so policies are often aligned with the term of a mortgage or other loan.

What you need to know

We recommend life cover for most people who have a mortgage. If you have a family, you may also consider life cover to  cover you whilst the children are growing up so that if something happened to you, your family are protected, taking a policy that will end when they become financially independent. With life insurance, you aren’t guaranteed to receive a payout as you could outlive the term of the policy. However, what you do get is the continuing peace of mind and the guarantees that protection policies give you and your family.

PROTECTION PLANS WITH NO INVESTMENT ELEMENT WILL HAVE NO CASH IN VALUE AT ANY TIME AND WILL CEASE AT THE END OF THE TERM. IF PREMIUMS ARE NOT MAINTAINED THEN COVER WILL LAPSE.

Critical Illness Cover

What is does

Critical illness cover pays out a tax-free lump sum if you are diagnosed with a major illness, including cancer and heart disease. Actual illnesses covered in a policy may vary between providers.

What you need to know

Many people buy a combined life and critical illness policy, and it makes sense to do so. In this case, a payment would be made on either diagnosis of a critical illness as defined in the policy, or death, whichever is the sooner. If the cover is combined in this way, the policy premium is usually cheaper than it would be for separate policies, as there is only ever one lump sum paid out by the insurance company.*

CRITICAL ILLNESS PLANS MAY NOT COVER ALL DEFINITIONS OF A CRITICAL ILLNESS. THE DEFINITIONS VARY BY PROVIDER AND WILL BE DESCRIBED IN THE KEY FEATURES AND POLICY DOCUMENT IF YOU GO AHEAD WITH A PLAN.

Mortgage Payment Protection

What is does

Mortgage payment protection policies are designed to cover the cost of your mortgage payments if you’re sick, have an accident or become unemployed and can’t work.

How it works

Generally, the policy will start paying out either 31 or 60 days after you are unable to work. Most policies will payout for a maximum of one year.

What you need to know

With statutory sick pay set at just £92.05 (applicable from 6th April 2017) and only payable for up to 28 weeks, many families would struggle to meet their mortgage payments if disaster were to strike. The amount payable under the policy is usually around £1,500 to £2,000. So, if you have a large mortgage, you will need to consider how you would cover any shortfall. You can choose the date at which the policy would payout in the event of a claim. This can range from a month to up to a year. Policies that payout sooner will have higher premiums.*

Income Protection

What is does

This type of policy pays a monthly income tax- free if you are unable to work due to an illness or injury.

How it works

The monthly income under the policy will be between 50 and 70 per cent of your salary and will be paid until you are fit enough to return to work or reach retirement age.

What you need to know

State benefits aren’t generous and only a few employers will continue to support their staff through a long illness, so income protection policies can help families through difficult financial times. You can choose the date at which the policy would payout in the event of a claim. This can range from a month to up to a year. 

Policies that payout sooner will have higher premiums.*