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Mortgage cover
Whatever type of mortgage you have it is important to consider how to protect yourself, your family and your home.
Buildings and contents insurance
- Every property that is mortgaged needs to have buildings insurance in place, this will be a condition of the mortgage lender to protect their interest. Contents insurance is optional but obviously very important to protect your possessions from theft and flood etc.
Life cover and critical illness cover
- Without life cover in place, the mortgage will still
remaining outstanding even after death. Your family and beneficiaries will
need to pay the monthly mortgage payments until the property is sold and the
mortgage settled. Don't forget to allow for Solicitors and estate agents
fees.
- This problem can be avoided simply by taking out a
life cover or
life assurance policy to cover the
borrowers on death.
- Critical illness cover can either be taken out separately or added to a life cover plan. These types of plan payout when you are diagnosed with a range of specified illnesses as per your policy terms. The money is paid to you so you have the choice of how to spend the money.
Income protection and mortgage protection insurance
- There are a wide range of policies that will help you
protect your income and mortgage payments in the event of redundancy or
unemployment, accident or sickness.
- Income protection plans
will insure your income, regardless of whether or not you have a mortgage in
place.
- Mortgage payment protection plans (MPPI) are specifically designed to protect your mortgage payments but are also linked to your income. Typically they will allow you to cover your mortgage payments plus and extra % to cover other policies and expenses. MPPI plans tend to be slightly cheaper than income protection policies.
