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Protecting your mortgage
Whilst we would all like to think that nothing will happen to us and we will live a long, healthy and happy life, it’s a fact of life that Illness, accidents and bereavement can happen at any time and usually when we least expect it.
A mortgage is a long term commitment and we feel we owe a duty of care to our clients to ensure they can maintain their mortgage repayments In times of incapacity and redundancy, repay their mortgage in the event of a serious or critical illness and leave loved ones financially secure in the knowledge that the family homes is secure.
We can’t predict when, where or how the unthinkable will happen, but we can protect against it. A tailored protection solution for your individual needs will provide you and your family with peace mind that if the unspeakable does happen your home will be secure.
Mortgage protection insurance explained
There are two types of life insurance. Decreasing term assurance and level term assurance.
Decreasing term assurance
This type of life insurance is usually taken to protect a repayment mortgage. You choose the amount of cover you want, normally the mortgage balance outstanding and how long you need the cover to be in place, usually the mortgage term. If you die during the chosen term a lump sum of money equal to the outstanding mortgage balance is paid enabling your loved ones to repay the mortgage debt and remain in the family home.
This tends to be the cheapest form of life cover as the sum assured decreases in line with your reducing mortgage balance. This means you only pay for the amount of cover you need to repay the mortgage debt at any time during the mortgage term.
Level term assurance
This type of life insurance is usually taken to protect an interest only mortgage. You choose the amount of cove you want, normally the outstanding interest only mortgage balance and how long you need cover to be in place, usually the mortgage term. If you die during the chosen term a lump sum of money is paid enabling your loved ones to repay the mortgage debt and remain in the family home.
The main difference between this and the decreasing term assurance is the amount of cover remains constant, it does not decrease as neither does the mortgage balance on an interest only basis.
This type of life assurance is also used to provide family protection.
Being diagnosed with a critical illness can have a devastating impact on you, your family and your finances. Often resulting in being less able bodied and dependant on other’s around you, having a lump sum of money if diagnosed with a specified serious or critical illness can bring peace of mind and ensure you don’t lose your home.
Critical illness can be arranged on a decreasing term or level term basis as with life assurance.
You choose the amount of cover you want, normally the outstanding mortgage balance and how long you need cover to be in place, usually the mortgage term. If you die during the chosen term a lump sum of money is paid enabling you to repay the mortgage debt and remain in the family home. This enables you to concentrate on what really matters, recovery and spending quality time with your loved ones.
Critical illness cover can be added to life assurance policies or arranged on a standalone basis. If you do add on critical illness cover to a life assurance policy, the policy will pay out the lump sum once if you die or on diagnosis of a qualifying critical illness during the term of the policy.