None of us like to think about the worst happening, but we believe that it’s important for our clients to be prepared. Unfortunately, adverse life events such as sickness, injury or death do carry potentially serious financial consequences – especially where there is a mortgage involved. To help mitigate the danger of your family struggling financially and possibly even losing the home, there are a range of policies designed to pay out should any of these occur. They also help provide you with peace of mind knowing that even should the worst happen, the financial side of things will be taken care of.
We will always strive to give you the right advice, and will discuss which options you should consider along with your mortgage.
We can help you with the following types of cover:
Critical Illness Cover
Critical Illness Insurance is a type of cover that will pay out on diagnosis of a serious illness. Just like life insurance, this is a tax-free lump sum that can be used however you wish. Some typical uses include paying off the mortgage, clearing other debts, paying for private medical treatment or even simply funding time off work to recover.
This type of policy is designed to replace your income in the event of long term sickness or disability.
Instead of paying out a lump sum, Income Protection will pay out a set monthly income should you be unable to work. Unlike Critical Illness cover, it doesn’t just pay out for the more serious illnesses –
in fact , some of the most common reasons to claim include mental health and back problems.
Life Insurance is a type of personal protection policy which will pay out a tax free lump sum of money in the event of death during the policy term. This is often tailored to fit the mortgage amount, so that the debt can be paid in full. Life insurance is particularly important for people who have children or other dependants and want to make sure that the home is taken care of should the
Family Income Benefit
This is very similar to life insurance in that it pays out a tax free sum in the event of death, however the key difference is that it will pay out a sum annually instead of all in one go. This type of cover is generally used to replace a lost income long term to support a dependant family.
Which policy is right for you will depend entirely on your circumstances. As part of our advice, we’ll discuss any particular areas you have concerns about and work with you to tailor a solution to your specific needs and budget. We also advise on protection above and beyond just for the mortgage, so if you’d like to arrange any extra cover to help with any additional requirements you have, just let us know.