You now have a home, but how do you ensure it remains yours? Although we don’t like to think about it or think that it will never happen to us, sometimes unfortunate events can happen in life that can change your financial situation. It is your responsibility that you keep up your mortgage payments, otherwise your home maybe repossessed.
To start off, one of our advisers will look at your mortgage options and then look to make sure you can keep up payments - in best and worst-case scenarios. We want to give you the peace of mind that should anything unexpected happen, your home remains yours.
We are specialists in arranging mortgages and helping people buy their new home but we are also dedicated to ensuring that you can keep your new home if the worst were to happen.
The types of protection we are looking at are insurance policies that protect you, your family and your home. There are different policies that can do this by either protecting your life, your income, your partner’s life and/or income.
Here are the different types of cover available to you:
This is an insurance policy that pays out a lump sum in the event of death. It is important if you have or are planning on having a family, or if you own your own a property and would want the mortgage paid off in the event of your death, so you are able to leave the property to a loved one.
You will be surprised at how little life cover can cost you
The cost of your life cover will depend on the age you are when applying, your current health and your job. So, if you are a skydiving instructor, your premiums would be more expensive than someone who sits behind a desk. In general, the younger you are when taking out life cover the cheaper it is, as your premiums do not increase with age.
If you wanted life cover only to cover your mortgage, you can arrange life cover policies that will decrease along with your mortgage amount. These policies can also be cheaper in premium because the amount of cover you require decreases as the years go by. You would be surprised how little life cover can start from.
Critical Illness Cover
CIC will pay you a lump sum of money upon diagnosis of a critical illness or serious injury. This type of insurance policy will pay you a lump sum of money depending on the amount of cover you selected.
Because of the advances in medical treatment now available, you are more likely to survive a serious illness. However, you may be unable to work or perhaps never be able to work again. This would obviously put a huge strain on trying to maintain your standard of living and more importantly keeping up with your mortgage payments.
How much does a Critical Illness policy cost and what type shall I take?
This will depend on what’s best for you, your needs and how much you can afford to pay. You need to feel comfortable about the monthly amount paid. If you have a family then Critical Illness Cover could be something you could consider having. Critical illness can be attached to life insurance. We can have a look for you to make sure your policy does exactly what you need it to do, and if you’re unsure, we’ll be happy to talk it all through with you.
For more guidance on this and to get a quotation based on your circumstances please contact us and we’ll take care of it from there.
Income protection is an insurance policy that would pay you a monthly income while you were unable to work due to an accident or sickness. You can set up the policy so it varies in the amount it pays out, usually, this amount cannot exceed 65% of your gross monthly income. You can also set it up so it only pays out once your work sick pay has finished. This is called deferred period.
Income protection do I need it?
If you owned a machine that paid you a salary every month, would you insure that? Probably, and that machine is you.
If you were unable to work and your sick pay ran out, would you afford to pay the mortgage and other household bills?
The last thing you need while unable to work is the additional worry of keeping on top of your bills, especially your mortgage.
What does income protection cost?
Income protection policies can vary in price. It depends on the age you are, your health, type of job you do and the amount of cover you need. We can help you with getting a quotation, simply contact us and we can run through the details.
Accident, Sickness and Unemployment
In these unsettled economic times, it has never been more important to protect your home and family against the risk of involuntary unemployment, accident or sickness.
Unemployment cover can help you continue to meet your mortgage repayments for a period of up to 12 months per claim, in the unfortunate event that you become involuntarily unemployed or suffer from business failure (if you are self-employed).
Accident and Sickness Cover
Accident and sickness cover can provide peace of mind in the event that you are unable to work due to accident or sickness by helping to meet your mortgage repayments for up to 12 months per claim, allowing you to focus on your recovery.
Are you ready to protect your mortgage?
Mid Sussex Mortgages can ensure that you have the appropriate protection in place make sure that your home, stays yours. Contact us today to get the peace of mind that comes with a fully protected mortgage.