Why Protection Matters When You Take Out a Mortgage
Buying a home is one of the biggest financial decisions you'll ever make. But have you thought about what would happen to your mortgage if you became seriously ill, had an accident, or passed away?
Types of Mortgage Protection
Life Insurance
Life insurance can repay your mortgage if you die during the policy term. Decreasing term cover is often used alongside repayment mortgages, as the cover reduces in line with your outstanding balance.
Critical Illness Cover
Critical illness cover pays a lump sum if you're diagnosed with a specified serious illness. This can be used to repay or reduce your mortgage, giving you financial breathing space during recovery.
Income Protection
Income protection replaces a percentage of your income if you're unable to work. This can help you continue making mortgage payments even if illness or injury stops you from earning.
Common Mistakes
- Relying on savings alone, they can run out quickly
- Assuming employer benefits will be enough
- Not reviewing cover when remortgaging or moving home
- Having life insurance but no income protection
Protecting More Than Your Mortgage
The right protection covers more than just your mortgage. We can also help you think about your wider financial plans, including estate planning, Wills and Lasting Powers of Attorney, through our estate planning partner.
Visit our mortgages page or book a consultation to discuss your needs.
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