Amy Kadir, St Albans - Why protection cover is important if you have a mortgage

Friday 14 October, 2022

If you have a mortgage but don’t yet have a protection policy call our mortgage broking team on 01727 845500.  We can organise life insurance cover, income protection and critical illness cover.

Why is it necessary to take Life insurance cover?

It is worth taking life insurance cover if your income is required to pay for your mortgage.  It is important to think about how your family and your dependents will cope financially if something were to happen to you.  

There are three types of life cover that we can discuss with you to ensure you take out the right cover for your requirements.  Level term assurance, decreasing term assurance and family income benefit.  

How much life insurance cover do you require?

How many dependents do you have and how old are they?
How much income do you require to pay your mortgage?
What benefits are available from your employer?

When do you need Critical Illness cover?

Critical illness cover gives you peace of mind if you were ever unfortunate enough to find yourself in a state of total or permanent disability, or diagnosed with a number of highlighted serious illnesses, that would result in your being unable to pay your mortgage.   Critical illness cover can be combined with life assurance cover.  It covers many illnesses including cancers, heart attacks and strokes.  It normally runs until you reach retirement age or have paid off your mortgage.  

Income Protection can help to pay your mortgage if you can’t work

If you are unable to work you can purchase income protection cover that will pay a monthly tax-free percentage of your salary (normally 50-65%) so you can continue to pay your mortgage payments and other bills until you return to work, or until the policy ends.  

Amy Kadir, Mortgage broker and protection adviser in St Albans, Hertfordshire said: 

‘When we offer mortgage advice, we always discuss protection cover with our clients and we email out protection cover quotes, so you know how much it costs.  Unless you have enough savings to pay your mortgage indefinitely it is important to take protection advice when you take out a mortgage.  Our mortgage brokers are trained to offer critical illness cover, life assurance and income protection.  By discussing your financial and personal situation we can determine the best protection cover for you and your family.  Remember also that some employers offer critical illness cover and life cover, so it is worth checking with your company’s HR Department before you take out protection cover.  If you already have a mortgage but no protection cover, we recommend calling our mortgage broking team now.  

In Summary

Call your mortgage broking team in St Albans, Lichfield, or Chippenham so you get protection cover to pay your mortgage if you can’t.  Your local mortgage broker is trained to provide protection advice for your personal situation.  Call 01727 845500 or complete our booking consultation form.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.  ‘The information contained in within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction.’

 

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