Protecting your home
Home and Contents
Your lender will insist that your home is covered for full rebuilding costs against the common risks of fire, storm and flooding. For the peace of mind it brings, most people would do so as a matter of course, anyway - the same goes for contents cover, too. You don't have to take out the policy offered by the lender, this can prove to be a costly mistake, especially if they add the premium to your mortgage balance each year. We can provide competitive quotes, we would suggest that you shop around.
Life Assurance
Pays out a lump sum on death. This will ensure your partner or family (depending on what cover you choose) will not have to continue paying your mortgage or have to sell up should you die before it is paid off. It is included with an endowment policy, but you may need to take it out separately on most other types of mortgage - such as repayment (capital and interest)
You might also think about Critical Illness cover. This is designed to pay out a lump sum if you or your partner contract one of a list of serious illnesses, such as cancer or a heart attack, and do not die.
Accident, sickness and unemployment protection
Even if you were in a typical nine to five job, it would still be a struggle to meet mortgage repayments if you became ill or were made redundant. If you have no regular income, it would be even worse. You might well have some form of income protection in place already, but if you don't you should consider protecting the amount of your mortgage payments at the very least.
O.K. Mortgages can arrange policies which can cover you if you are permanently employed, self employed or on a fixed contract, subject to certain conditions being met.
Permanent Health Insurance (PHI)
Although Accident, Sickness & Unemployment cover protects your mortgage payments you may feel more secure protecting your income against the possibility of not being able to work due to long term illness.
A PHI policy has a defined waiting period before you can claim, this can tie in with your employer's sick pay scheme if you are employed or with your ability to fund costs from savings. For the Self-Employed it is especially important to protect income as it is unlikely that you would be able to continue running your business if unable to work.
The policy will continue to pay a set monthly benefit, which is a proportion of your income, until either you are able to return to work or you retire.
For more information on any of the above or a free no obligation quotation please contact us.