When you take out a mortgage or loan, it makes sense to be protected
Taking out protection to cover your repayments will save your loved ones a lot of stress – and money – at a time when they most need support
At Key to Your Mortgage, we believe that it is sensible that carefully consider some form of protective cover that pays out if you are unable to re-pay the loan. Whether this is due to death, illness, injury or loss of your job, this insurance provides peace of mind to you, and could save your family from further suffering.
There are various types of cover, dealing with the different kinds of risks, including:
Life cover – this provides a lump sum if you die during the policy term, and the cover can help your loved ones to pay off your mortgage. Therefore your relatives will not have to worry about the repayments on your mortgage.
Critical illness cover – this is designed to help cover those critical illnesses which could have a severe impact on your lifestyle, and should pay out if you are diagnosed with one of the specified critical illnesses or disabilities listed on the policy or on death during the period of cover. You can use the lump sum to pay your medical costs or repay your mortgage.
I am pleased to recommend Nick, who assisted us with sourcing a critical illness policy. His knowledge and advice were much appreciated, as was his patience whilst we considered how to proceed. Thoroughly recommended.Michael Scutt at Employment Lawyer
Accident, sickness & unemployment (ASU) – this is a short-term income-protection policy which pays you a tax-free monthly benefit for up to 12 months if you can’t work due to an accident or sickness or if you become unemployed through no fault of your own. You can choose to protect yourself against accident and sickness only, or unemployment only.
The cost of all insurance depends on a number of factors, such as your age, where you live and your occupation. There are other providers of short-term income protection and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk.
Income protection is an extension of ASU cover, with the added benefit of covering you for a long-term sickness or injury that prevents you from working, and can pay out until your retirement or death, or until you return to work. The cost of an IP policy will vary depending on your income, location and other circumstances, and can cover a fixed term, or indeed the full term.
Buildings insurance – this will cover structural items that cannot be removed if you move home, such as the roof, walls, windows and permanent fittings.
Contents insurance – this will cover your household goods, personal possessions and valuables within your home.
At Key to Your Mortgage, we try to look at things from your point of view, then add our own knowledge and experience to come up with the best solution for you and your loved ones.