Insurance Products Often Go Hand In Hand With A Mortgage

Nov 8, 2021

With so many insurance products available out there, it can be difficult to establish what one specifically is the most suitable for you.

You may even feel like you do not need insurance or protection at this moment in time. However, it’s this way of thinking that could have devastating impacts for you and your loved ones in the future.

We regularly find ourselves talking with clients about insurance options when it comes to arranging their mortgage as often such a big financial commitment brings about questions such as how mortgage payments will be met in the event of things such as critical illness, injury, or other life altering / changing situation.

When it comes to protection policies, people can all too often think ‘it’ll never happen to me’ or ‘I’ll get round to sorting it later’. However, life is unpredictable and who knows what’s waiting around the corner!

When it comes to looking at the relevant insurance products for you, there are many different types but when it comes to protecting your mortgage, there are three common products.

These are:

Life Insurance

Life insurance insures you for a certain amount in the result of your death. There are a few different types of life insurance, and these change the amount you pay over time along with the amount that you are ultimately covered for.

Critical Illness

Critical illness insurance will cover you in the event that you become seriously ill. For example, should you become incapacitated as such that you are unable to work (the details are always covered in your policy).

Critical illness cover can come into effect for a set amount or the value or your mortgage as a whole, depending on which options you choose.

Income Protection

Income protection is a policy that will protect your income if you are unable to work, most likely due to illness or injury. This is very likely used to pay your mortgage as well as other crucial ‘general life’ costs.

If you are considering income protection, there are a number of things you need to consider and because of this, it’s often best to speak with a protection advisor who will help you make an informed decision.

If you have any questions, our advisors are on hand to help and you can contact us either by calling 01322 553 282 or through our website here.