Ok, so I’ve got your attention now, right? Here’s a quick definition of the mortgage protection family.
- Life insurance ensures the security of those that you love in the event of your death.
- Income protection replaces your income in the event that you are incapacitated through illness.
- Critical illness protection covers you in the event that you have a defined critical illness such as heart attack, cancer, or stroke among others.
A comprehensive mortgage protection cover will ensure that your family is secure in your time of need.
Will mortgage protection fully protect my family and home if I can’t pay my mortgage?
There are 3 key products to consider to fully protect your mortgage in the event that you can’t make mortgage payments
1. Critical illness cover
As the name suggests, this protects you in the event that you contract a defined critical illness. Illnesses such as cancer and heart attack fall under this product. When you purchase this product it is vital that you declare everything that you know about your health. The level of cover and cost will depend on your family history and current health. It may also consider your job.
2. Loss of income protection
Another product in the mortgage protection family is income protection. Income protection replaces your income in the event that you are incapacitated through illness. Income protection will typically payout after a defined period until you retire, return to work or die. You won’t get a payout if you’re made redundant, however, and insurers have reacted in different ways to the Coronavirus outbreak.
3. Life cover
Most people know what life insurance is. Most lenders will check that you have it in place when you take out a mortgage with them. It pays out a sum of money in the event of your death. But there are different variations of cover to ensure that the policy matches the mortgage that you have taken out;
- Level Term will pay out a level sum of money. This is paid to your family, or nominated person in the event of your death.
- Decreasing Term As the name suggests, the payout made on death reduces in line with your current mortgage.
4. Business Protection
If you’re a company director, a partner in a business, or sole trader there are options for you to consider to protect your it. Not only can you protect yourself and your family in the same way as you would for mortgage protection. But you can protect your business against the loss of key employees to ensure business continuity. Will Protect has published a blog about business continuity here
Mortgage protection has a number of facets to consider both in terms of cost and the level of cover that you want to take out;
- Family history. Is there a history of health issues in your family?
- Employment. Do you travel overseas or work in a high-risk occupation?
- Employability. If you lose your job how quickly do you think you could find a new job at a similar level to your previous one?
- Family after you. Do you want to make extra provision for your family after your death, or cover your mortgage so that your family home is secure?
Mortgage Protection and Liddle Perrett
Here at Liddle Perrett, we take a holistic approach to mortgages and mortgage protection. We believe that both aspects of borrowing should work together. You can borrow what you need to meet your objectives, personal or business. And protect your assets should you face difficult times through illness or loss of income, and protect your family when you die.
We understand the stresses of taking out a mortgage so we work hard to work alongside you to reduce the stress and ensure that the whole process is as straightforward as possible.
But we also work to educate our clients on the importance of the correct mortgage protection. We work to educate our clients on taking out the correct mortgage protection. In the event that you need it, putting the right cover in place can make a huge difference to your life at that point.
You may be fighting illness and need your energy to focus on recovery rather than the stress of learning how to make ends meet. Or you’ve lost a job and need to work on finding a new one. And with the right cover in place if the worst happens your family won’t have to worry about keeping a roof over their heads during a difficult and traumatic period in their lives.