Insuring your life, health and income is extremely important when buying a new home. In the event of the unexpected happening, it is extremely important to protect your husband / wife or partner along with your children or loved ones.
All too often people tend to insure many things but don’t cover the most important things which will protect their loved ones and family home. We regularly see that phones, cars, pets and TV’s etc are insured but life, health and income are not. If anything, unexpected should happen, the first thing to be lost could well be your home.
Just think – how would your loved ones go on financially if you either passed-away or became too ill to work? The vast majority of people would really struggle in this situation and should always consider taking out the correct insurance policies to support during these situations.
We offer an absolutely free professional consultation at The Mortgage Broker Dorset for every client we arrange a mortgage for. During the mortgage process, usually around the time that we submit your mortgage application after you’ve had your offer accepted, we will discuss this with you and set up appropriate calls required. We have an excellent team of protection advisers who will be only too pleased to help you.There are numerous types of insurance policies to be considered when buying your new home. We have listed some of the main ones for you below:-
Critical Illness Cover
With average UK living ages continuing to rise, there is a higher chance of you contracting a critical illness than dying during the term of the mortgage. With many critical illnesses, the ever-improving medical science is giving us all a better chance of survival after diagnosis. Diseases such as breast cancer and testicular cancer can now be treated very successfully. With critical illness cover, these policies pay out a lump sum which can be used to pay off or partially pay off your mortgage.
Whole of Life
Whole of life policies are a type of policy which pay out a guaranteed amount at the time of your death. These types of insurance cover are used for many reasons. However, two of the most popular policies are used to cover funeral costs and the payment of inheritance tax. The cost of a funeral can typically cost between £3k and £10k. With regards inheritance tax liability, a whole of life policy can pay out a fixed sum which can negate your beneficiaries having to pay the bill from your remaining assets.
Around 1,000,000 people per year are off work with illnesses or injuries. In most cases like this, people really struggle to pay their mortgage and bills. An income protection policy will pay out a regular monthly payment which will help you get by. There are various options to be considered with income protection and you can insure differing percentages of your monthly take home pay. These policies are available for employed people along with the self-employed, sole traders etc.
Term assurance policies pay out on either yours or your partners deaths. These policies are usually taken out with a term of years to match your mortgage payments. This is the most basic form of life insurance and should always be seriously considered when anybody buys a new home.
Family Income BenefitThis type of policy compliments and adds to a pure term assurance policy. FIB policies are an excellent type of policy and pay out a monthly income to your partner / children in the event of your death. These types of policies should always be considered if you and your partner rely on each other wages to pay the mortgage and bills. They should be especially considered if you have any financially dependents.
We offer free protection consultation for every mortgage we arrange:
- Consider a policy to pay your mortgage off in the event of your death
- Income protection can pay out a monthly amount should you not be able to work through illness
- Self-employed and sole traders should seriously consider income protection, if your unable to work how are you earning an income?
- Many people recover from critical illnesses but are then unable to work. Critical illness cover can pay off your mortgage either partially or in full upon diagnosis
- Family income benefit will pay a monthly amount to your partner and dependents in the event of your death
- Insure against your funeral costs or inheritance tax bill with a whole of life policy
- We offer a free consultation by a fully trained specialist consultant