Protect your mortgage
Why should you protect your mortgage?
Your mortgage is probably the biggest financial commitment you will ever make in your life time.
Buying a property is easy when you are being guided by us for the mortgage, but keeping it can sometimes prove to be difficult. Think about your mortgage term and ask yourself – at some point during this time are you are likely to get sick, have an accident, be made redundant or even worse die? How would you cope? How would your family cope? Who’s going to pay the mortgage and look after your family?
A critical illness or a death can be devastating to a family, and it can cause major problems to peoples finances. By working together to review all of your protection needs this can provide comfort knowing you have protected those closest to you. We will happily look at any existing cover you have, gaps in cover that need to be filled and any requirements for cover on your new mortgage.
Your circumstances change all the time, therefore your requirements from protection do too, and we make sure that we meet those changing needs in the most cost effective way possible.
You need to be prepared and we are here to help you do just that.
It’s our job to make sure you are covered when and where you need to be. We will research, find and arrange the correct policy so that you are safe in knowledge that, should the worst happen, you and your family are protected.
Life insurance helps give your family financial protection should you die or potentially be diagnosed with a terminal illness within the policy term. It provides a lump sum, helping your loved ones maintain their living standards or pay mortgage costs.
If you have a family, life assurance can give you peace of mind that they will be looked after in the tragic event of your death. None of us like to think about it, but understanding how this type of insurance works could save you money.
Joint or separate life insurance policy?
If you and your partner would like combined cover, you can take out a joint policy.
This pays out once and won’t provide cover for the second person after the first passes away.
You can also both take out two separate policies. So if there is a pay out for one person their policy will end –
but the second person’s policy will continue.
Level or Decreasing Term?
With a level term policy the level of cover remains the same throughout the term.
It is often used to cover the repayment of liabilities such as the non owned share of a shared ownership property
or particularly interest-only mortgages which do not reduce throughout the term.
With decreasing term policies, the benefit payable on death falls each year until it is zero by the end of the policy’s
term and will match the mortgage balance.
Such insurance is often used in tandem with a repayment mortgage where the balance falls across the mortgage term.
The premiums on these policies are cheaper than for level term insurance.
Critical Illness cover helps protect you if you become critically ill during the policy term. It pays out a tax-free lump sum that you can use however you like – whether that’s to help cover health-related costs, monthly expenses, taxi’s to hospital for treatment, adaptations to the home or replacing lost income while you get better.
Critical illness insurance pays benefits on the diagnosis of certain specified critical illnesses. The range of diseases covered differ from one company to another but all policies cover core conditions such as cancer, coronary artery bypass, heart attack, kidney failure, major organ transplant, multiple sclerosis and stroke. They will also pay out if a policyholder becomes permanently disabled as a result of injury or illness.
Some policies will also offer children’s cover, either included or as optional extra to ensure that you will receive support if your child is diagnosed with or has surgery for a critical illness.
Home owners need two types of home insurance to enjoy peace of mind. Buildings cover (which is a condition of any mortgage) pays for damage to your home caused by, for example, fire or subsidence. Contents cover protects your household possessions. These two types of cover may be bought separately but it is often more convenient and cost-effective to buy them under one policy. Choosing the best deal from the wide range on offer can be a nightmare. Many companies now offer all-singing, all-dancing policies but beware – the number of conditions, caveats and exclusions has also expanded. We’ll help you pick your way through the insurance jungle with the greatest of caution.
Be aware that if you move house you may need to change both policies because the risk has changed.
You may have a policy covering your life should you die – this will enable your mortgage to be paid off and relieve the pressure on those you leave behind. However how will they continue to survive?
You may have maintenance payments you are making, you may want to ensure your children’s prospects are not affected by a drop in the family income or you may need to help with care costs.
Family Income Benefit is a cost effective way of providing those you leave behind a tax-free monthly income until the end of the term on the death of the life assured or their diagnosis with a terminal illness.
For example – you have a young child who you want to ensure is looked after until they turn 18, you could set the term of the policy to last until their 18th birthday and this would ensure whoever is looking after them will be financially supported and able to provide them care without the added pressure of having to work to replace any lost income
Income Protection (IP) is an everyday essential which works when you can’t. The cover protects your income if you are unable to work because of an accident or illness and pays out an ongoing, regular benefit.
Long-term illness is something we prefer not to think about but every year a vast number are absent from work for more than six months because of it and the consequences can be devastating as the state offers only minimal help. Eligibility for benefit is strict and even if you qualify, benefits are not generous and they are taxable.
Income Protection is the answer. It pays a regular income designed to protect your standard of living if you suffer long-term sickness or injury. Benefit usually starts after an initial waiting period of four, 13, 26 or 52 weeks and it is payable until you return to work, die or the policy term expires, whichever happens first.
Some policies will also include fracture cover as standard – offering a lump sum pay-out if you are diagnosed with a specific bone fracture.
Whole of Market
Find your mortgage
Independent mortgage advisors with no links to any specific mortgage lender. This means that you are not limiting yourself to a single lender or group of lenders that a ‘tied’ broker works with.
Meet the team
Mortgage Quest have a combined 150 years in the industry and can use this expertise and experience to help you. Why not take a moment to learn more about our team?
Face to face advice
We are based in Royston, but with National coverage meaning we can find you the best products that we have access to regardless of your proximity to our Hertfordshire office.
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We’d love to help you!