Mortgage payments are often the single biggest outlay facing your finances. That’s why it makes sense to review the protection products you have in place when you’re arranging your mortgage.
Your adviser will discuss you and your family’s needs and review what cover you have in place at the moment (if any). They will recommend options to make sure your mortgage, income and family are fully protected should you pass away, become critically ill, or are unable to work due to illness or injury.
There are lots of different types of products out there, but these broadly fall into the falling categories:
- Designed to pay off your mortgage in full in the event of your death - meaning your loved ones are not left with the worry of paying a monthly mortgage payment
Critical Illness Cover
- Designed to pay out a tax-free lump sum in the event that you’re diagnosed with a critical illness such as cancer, heart attack or stroke. This can be used to pay off your mortgage, help manage your outgoings or make adjustments that may be needed as a result of your illness
- We also specialise in critical illness cover for your children, worryingly, this is one of the top five claims in the UK on this type of cover
- This type of product gives you a tax-free monthly payment if you’re injured or ill and unable to work.
- It’s worth considering this alongside the benefits you might get from your employer, as at present, Statutory Sick Pay (SSP) is only £99.35 per week.
Family Income Benefit
- This type of product provides either a monthly payment or lump sum upon death.
- It’s often taken alongside Life Cover, which is there to pay off a mortgage, but not replace an ongoing income.