How To Protect Your Mortgage
Do not confuse mortgage protection with another type of insurance that is mandatory to a mortgage lender loaning you money for your home, which is building and contents.
We are only interested in protecting you against losing your home in the event of an accident illness or death in your family which would leave any dependants homeless, this is literally why we do what we do.
The two different insurance types we focus on:
Income Protection: This is your safety net if you suffer from a professionally diagnosed illness or have an accident that does not allow you to perform your job.
If you do not already have income protection in place as a contractor or a self-employed person, be aware that the only amount you will receive from the government via a benefit under their terms is less than £100 per week….so If you have a mortgage and have no safety net we strongly advise you reach out, we are fee-free brokers which means we will never charge you a feel for our advice.
Even if you are employed, you may be surprised by the small print in your employment contract over the amount, conditions, and term you would be covered for in the event of you not being able to work. We highly recommend that people take responsibility because let us be honest if your mortgage lender does not get paid, they are not going to be sympathetic, your property belongs to them until your mortgage is paid off. Fact.
Life Insurance: Life insurance is designed to pay a lump sum to your dependents in the event of you dying to help protect them from any outstanding debt, and to maintain a standard of living if they lost your income.
If you have anybody dependent on you in life to pay for anything that helps to keep your finances afloat, then we strongly recommend that you protect them from any debt they would incur if you were to die.
Employment death in service contracts tend to be very for a limited time, and amount of money. Life insurance pays out a lump sum to your dependants which could help towards or pay for any outstanding debt you may have on your mortgage, just think about the difference this could make to anybody that relies on all or a percentage of your income. If you die you may have a partner who would have to pay for child costs for instance as a result of going back to work.
A family Income benefit is also a life insurance policy that pays your dependants a monthly income rather than a lump sum as an alternative option.
We are here to protect you. But only you can choose whether you want to help yourself.
MTGE – We Care
Article wrote: April 14th, 2022
Please be aware the details of this article are appropriate from the time it was written, therefore any information given after this date may have changed.