Services: Life Insurance and Mortgage Protection

When taking out a mortgage it is compulsory to take out buildings insurance. While other insurances are not compulsory, they can be invaluable and many of our clients choose to take out life insurance and / or income protection insurance.

 

Life Insurance

Life insurance is not a compulsory insurance, but most lenders would prefer to know that you have life insurance in place as this will effectively pay off your mortgage in the event of your death. It is also highly recommended, particularly if you have a partner or children or other dependents that could be disadvantaged on your death.

 

Selecting the correct kind of life insurance to suit your mortgage is important, as well as discussing options such as critical illness cover, or features which allow you to alter cover to adapt to your future needs.

 

All our mortgage advisers are fully qualified financial advisers and will advise you on the most suitable policy for your mortgage needs, we can also advise on your other needs should you wish. We will also request illustrations from the whole of the market to ensure our recommendation represents the best value for money.

 

Income Protection Insurance / Mortgage Payment Protection Insurance

MPPI stands for Mortgage Payment Protection Insurance. It is not compulsory insurance but many lenders will urge you to take the cover out. The policy is designed to meet your mortgage payments should you be unable to work due to accident or sickness, and some also cover you against unemployment or redundancy. Typically they will start to pay one month after your employer stops paying you, for a maximum of 12 months.

 

Some clients sleep very well knowing they have this cover however, they are designed only to cover your mortgage payments. Whilst a mortgage payment is typically our clients biggest outgoing, it is not their only one and so an Income Protection policy make be more appropriate.

 

Instead of providing cover for a particular area, for example your mortgage, Income Protection is designed to pay you an income if you are unable to work through accident or sickness. It does not cover you for unemployment. However, the benefit is yours to do with as you wish, not only to pay the mortgage. These policies are medically underwritten and will pay to a selected date, typically the policyholders 65th birthday if you have to make a claim. Please note that there is usually a deferred period before payment starts of either 3 or 6 months. 

 

This type of cover is surprisingly low cost and certainly gives peace of mind. Please contact us for a no-obligation chat and illustration.