A mortgage is potentially the largest single financial commitment that most of us are likely to undertake.

It is therefore essential to ensure there is sufficient protection in place to ensure the security of yourself and your family should anything happen to you during the mortgage term.

This could be death, critical illness, redundancy or accident and sickness and this could dramatically impact on the household budget should any of these events occur.

Types of protection cover that are available to you:

Level Term Insurance
The amount protected on day one of the policy remains constant throughout the term of the policy, payable on death. Ideal if you expect to borrow more in the future or intend to have an interest only mortgage.

Decreasing Term Insurance
Decreases in line with your mortgage, payable on death. Similar to Level Term but usually cheaper as the amount of cover goes down during the term of the policy.

Critical Illness Insurance
A lump sum paid on diagnosis of a defined critical illness. Can be written for the total amount on loan or a proportion.

Income protection cover
Paid monthly in the event of incapacity or long term illness. Can be written to normal retirement age.

Mortgage Payment Protection / ASU
Usually a 12month reviewable policy – provides cover for the mortgage payment and household costs in the event of accident sickness or redundancy. This policy can often be written to cover one or all eventualities.

All of the protection policies named above have benefits and drawbacks. Drawbacks can include exclusions and limits to the amount of cover. We will discuss these with you before we make a recommendation.

In todays workplace many of us receive substantial benefits from our employers that may protect much of the above. However insurance is there to protect the unknown so making sure the levels are correct is important.

We are happy to discuss at length your insurance requirements and take the time to consider any employers benefits which you may have.