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Insurance – a vital safety net for life’s unwelcome and unexpected events

Whenever you take out a mortgage, it’s vitally important to think about insurance too. Our advisers will be able to talk you through the type of cover that’s right for your circumstances.

Whilst you need to consider taking out a plan to provide a lump sum that would repay the mortgage in the event of your death, it’s only one of many ways that you can benefit from the security and reassurance that insurance contracts can provide.

Life Assurance

There are various kinds of policies to choose from, so it’s important to discuss the options with your adviser. Term insurance pays out when the policyholder dies within a set period of time. Term policies come in different forms, such as level term insurance, where the amount of cover remains constant throughout the policy. Decreasing term insurance, where the amount paid out reduces over the term, is often taken out alongside a repayment mortgage, with the sum assured reducing along with the outstanding mortgage debt. Whole-of-life policies provide cover that lasts a lifetime. This type of policy doesn’t normally have an end date, so premiums are paid until you die, at which point the policy pays out.

Mortgage payment protection insurance is designed to cover your mortgage payments if you’re unable to work due to an accident, sickness or unemployment. These policies typically pay out a set amount, usually for a period of 12 months or until you return to work, whichever is the sooner.

This Payment Protection Insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against the loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk

Critical illness cover is designed to pay out a tax-free lump sum in the event that you are diagnosed with a serious illness (as defined in the policy), such as cancer, stroke or heart attack or on incapacity following an accident.

So, there are lots of options on offer and the choice can seem bewildering – that’s where we fit in. We’ll work with you to find the best solution for your needs.

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