However, many people don’t insure their lives or their incomes. How would your family cope if anything unexpected happened to you? How would you pay your mortgage and bills if you or your partner could not work through illness?
Should you die without such cover any remaining mortgage debt would be set against the value of your estate and - if the debt exceeds the worth - the property may be repossessed and sold to cover the deficit. If, on the other hand, you had a joint mortgage, the debt would become the sole responsibility of the survivor who may not have the income to cover the payments.
It is also important to remember the cover you have should you ever increase your mortgage, as you may be left in a situation where your life cover is no longer adequate to pay off the mortgage.
Here are the some of the protection products which you should seriously consider if you do not have them in place already:-Here are the some of the protection products which you should seriously consider if you do not have them in place already:-
During your mortgage term it is more likely that you will be off work with illness as opposed to dying, so everybody with a mortgage should protect their income. Income protection is an insurance policy which pays benefits to policyholders who are incapacitated and hence unable to work due to illness or accident. Typically you can insure around 60% per annum of your gross income in the event of illness.
Term life assurance is perhaps one of the most straightforward types of life assurance available and the right life assurance can guarantee a payment if you were to pass away that would cover the remaining debt on your property, allowing you and your dependants to put any concerns about meeting mortgage repayments aside.
Family Income BenefitFamily Income Benefit is an innovative type of life assurance designed to give your dependants a tax free, monthly income in the event of your death. These policies are suitable for couples who rely on each other’s income and who have young families or have older financially dependent children.
Critical Illness Cover
With a Critical Illness, because of advancing medical science, you have an ever improving chance of surviving a Critical Illness. Illnesses such as breast or testicular cancers are now curable in many cases but are still considered to be a Critical Illness. Critical Illness Cover is designed to pay a capital sum or monthly income once you are diagnosed with a Critical Illness allowing you have financial peace of mind whilst focusing on getting back to full health.
Whole of Life
Whole of Life Assurance is the only type of life cover that will guarantee to pay a lump sum on your death. The average cost of a funeral is around £7,300. We can provide the peace of mind that your loved ones will not be left with this bill to pay after you have passed away. Whole of Life policies are also extensively used to provide a lump sum to pay an Inheritance Tax bill.