Not only is it important to find the right Mortgage for your needs, its equally important to properly protect you, your family and your mortgage, especially after perhaps the biggest purchase in your life!
Even with record low Mortgage rates, monthly mortgage costs can be quite a large proportion of your household income each month, yet it is amazing how many people do nothing to safeguard themselves from the perils that life provide.
At Essex Home Finance we have access to the very best of Insurers from the UK – providing both competitive pricing along with great innovation and ways to insure your own individual circumstances.
Mortgage Life Insurance – Repay the Mortgage should you die
The probability of you dying is actually very low, I am sure you will be pleased to know that! This is why the price of basic Life Insurance continues to fall each year, as the number of claims reduce, and as a nation we now live as long as ever, on average.
But we will all know someone who has died much earlier than expected, through illness or accident, and that has meant a legacy of finances and bills will need to be accounted for.
So Mortgage Life Insurance will at least provide enough money to repay the mortgage. The Amount of cover will be designed to match the balance of your mortgage, so the amount of cover will reduce in line with your balance, so the policy should always cover the necessary amount needed.
And whilst other bills and the cost of life still need to be financed, at least the ‘Roof over your head’ has been secured, and gives you some breathing space at a time the family will need some help.
Premiums are normally fixed for the term of the policy, and any application is subject to medical underwriting – we will help you through the whole process, so don’t worry.
Critical Illness – Lump Sum Payable on Diagnosis of a Critical Illness, to repay the mortgage and/or family
Modern Science is definitely helping us live longer, resulting in less claims on life insurance as mentioned above. However, there is a growing demand for financial help whilst people just like yourself may be involved in a serious accident, or health problems which may not be fatal, but will have an impact on the ability to fund all those financial commitments.
Most employers provide a basic level of Sickness benefit, aimed at those situations where you have a few days off for illness. Anything more long term though will likely be unsupported, and without any other benefits available, this is really the time you need some help financially.
In the same way as Mortgage Life Insurance works, Critical Illness Cover will provide a lump sum payable on the diagnosis of a major, or ‘Critical’ illness – for example most Cancer, Heart Attacks, Stroke plus an ever growing number of less Severe, but equally horrible conditions.
If you purchase Critical Illness for your mortgage, it can be arranged to match the outstanding balance of your mortgage, decreasing as the mortgage balance reduces. You could also buy a smaller amount as a ‘Lump Sum’, either to help repay the mortgage, commonly it is to provide for a sum of money at a difficult time in the families life.
Don’t let the stress of your finances impact on your own health, at a time you need to concentrate on treatment and recovery. Let Critical Illness cover, as part of your protection planning, help you and your family.
The Price of such cover can be expensive, given the probability of needing to make a claim in the future. However, by choosing the cheapest option may not provide you with the right level of cover for the conditions that are important to you and the family. We have a simple comparison policy tool that will help us recommend which insurer has the right version of Critical Illness Protection for your specific needs – speak to us for more details
Paying you an Income should you be unable to work – and to help pay the bills
When we speak to clients about the things they fear the most, it is the loss of their monthly income – what would you do if your salary or wages suddenly stopped, and the bills needed to be paid?
For those who are employed, most employers will provide a level of sickness benefit, typically 3-6 months of pay whilst you are absent due to sickness. As always, we recommend you check your current employers Sickness Benefit, don’t assume!
Once any Work benefit finishes, what do you do?
And if you are Self-Employed or a Company Director, can your company continue to function and/or pay you a regular income should you be unable to work?
A sensible solution is Income Protection – simply a replacement income once your work sickness benefit finishes, giving you a regular monthly payment whilst you recover from your illness or accident. Once you return to work, the payments stop.
There are many options within this type of cover, depending on your profession, and how long you would like to benefit from this cover.
Speak to us about your concerns, what you would need each month to pay your bills and essential costs, and how Income Protection can help you with.
Payment Protection is Optional. There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income.
Paying you a monthly income whilst you find a replacement role
How quickly could you fine a new Job should your employer make your Redundant? Need a bit of time to find a suited role, whilst paying the essential bills?
Any state benefit is not going to be able to cover even the most basic bills if you have a mortgage and your own home – but Unemployment benefit can be added to any of the above plans to provide an income for either 1 or 2 years, should you be made Redundant and need to find a new position.
The insurers will also be able to help you with finding a job, with an array of options and support to get you back to work quickly and effectively.
If you think that Unemployment is a concern for you, please speak to us as soon as possible.
State Provision - Do I need Insurance?
State provision is very limited these days, typically you would have to wait around 9 months before the State would be able to help, and their support is unlikely to fund even the interest cost of your mortgage.
So why not spend just a small amount of your monthly income on adequate protection, giving you that real ‘Peace of Mind’ that you can continue a reasonable quality of life if you become ill and unable to work, lose your job from redundancy, or you were not here to pay the bills.
Mortgage protection sounds scary, but it really isn’t – don’t put your head in the sand or put the ‘Superman’ costume on, get the protection right and then enjoy your life in your new home.
We can help with all aspects of your Insurance planning, whether just the basic ‘Life Cover’ for your Mortgage, or you want to protect the mortgage and your family should the worst happen. Our advisers have over 25 years experience within the Mortgage and Insurance Market, so use that experience and don’t rely upon Comparison sites to save pennies, that could cost you pounds….
Essex Home Finance Ltd is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.
Registered address: 1 High Street, Chelmsford, Essex, CM1 1BE.
Registered in England & Wales under number 10607263.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We do not charge for Residential First Time Buyers, Residential Home Movers, Residential Remortgage, and all Product Transfers (Residential or Buy to Let).
There will be a fee for all Buy to Let Purchase and Buy to Let Remortgage cases. Typically our fee will be £149, payable on Offer. We will agree any fees with you before we proceed with your case.
There will be a fee for all Equity Release Mortgage cases. Typically our fee will be £695, payable on Offer. We will agree any fees with you before we proceed with your case.
We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman.
Our advice is covered under the Financial Ombudsman Service. You may be able to submit a claim through the EU Online Dispute Resolution Platform If you live outside the United Kingdom or if you prefer not to deal directly with the Financial Ombudsman Service.