Insurances

Taking out a mortgage is one of the biggest financial commitments you will make. It is therefore essential to ensure that if you were to fall ill, or in the worst case pass away your finances would be protected to support either yourself or your loved ones if you were no longer here.

It can be easy to put it to the back of our minds but if you were to be seriously ill or die you need to think about what would happen and plan for this.

Life insurance provides a lump sum payment in the case of your death. If for example you take out a joint mortgage, if one of you were to pass away it could pay out to the other so the mortgage would be paid off. Additionally if you want to provide a lump sum payment to your children or families in addition to the mortgage amount this can be put in place.

It is more likely you will suffer a serious illness than die during the course of your mortgage such as a heart attack, stroke or cancer. Critical illness cover can provide a lump sum payment on diagnosis of these conditions and many more. It is therefore important to look at this area of protection when taking out a mortgage.

Your income is likely your biggest asset. Most people would not be able to cover their outgoings if they receive statutory sick pay. If you're self-employed you wouldn't even receive this if you couldn't work due to illness. Income protection pays a monthly amount if you were unable to work due to illness providing reassurance that your finances would be covered.

Building insurance is mandatory with almost all mortgages. The provider wants to know that if they are lending against a property, that property is insured. Alongside your building insurance it is always a good idea to protect the contents of your home. 

Many people see this type of insurance as a quick and easy thing to get from a comparison site. In reality the cheap and cheerful policies you can obtain don't always provide the best cover for you so I am always happy to help my clients with advice and quotes on building and contents.