Got yourself a new mortgage? What protection do you need?

Submitted by Dean on 8 August, 2022 - 12:46 with 0 comment

Got yourself a new mortgage? What protection do you need?

There are many products that you can consider when taking a new mortgage, and not all will be appropriate or necessary, so it is important to tailor the best cover to your personal circumstances. Here is a summary of what options you should consider and why some are not relevant:

  1. Mortgage Life Insurance:

This particular type of insurance is taken out for the term of the mortgage and designed to pay it off in the event of death. This is very important if you have a joint mortgage or dependants that you will leave behind.

  1. Critical illness cover:

You can incorporate Critical Illness cover into your Mortgage Life Insurance policy, which means that if you are diagnosed with a specific illness listed under the policy, you will also receive a pay-out. Most insurance policies cover around 40 critical illnesses, and these will include things such as cancer, heart attack and stroke. This does make the policy more costly, but it is worth exploring if you are looking into Life Insurance.

  1. Accident and Sickness insurance:

This is a type of policy that can protect your monthly mortgage payments in the event of you being unable to work due to an illness or injury. You can opt for a budget policy that will pay for 12 or 24 months if you are off work or for something more comprehensive that can pay until the end of the mortgage term, in case you cannot return to work. This is a crucial form of insurance for those with limited sick pay or for the self-employed. Things you should consider when deciding if this is the right type of cover for you include:

  • What savings do you have in place?
  • Are you the only one earning in the home?
  • What sick pay are you entitled to from work?
  • Are you self-employed?

Quite simply it’s great to get advice when you take out a new mortgage. Get a quote or talk to a specialist advisor at our group partner Assured Futures who will help you navigate and advise on the right product for your circumstances. Need a chat? Then call us on 02920 626 226 or email insurance@watkindavies.com

 

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Watkin Davies Insurance Consultants Ltd are one of Wales’ largest Independent Insurance Brokers, established in 1978 by Roger Watkins. Since this time we have become one of the leading Commercial and Personal Insurance Brokers in the region and the trusted insurance advisor to hundreds of Welsh and UK businesses and individuals.

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