Mortgage protection insurance is a type of policy that helps to ensure your mortgage payments are met should you experience financial hardship due to illness, injury or redundancy. It pays out a set amount each month after a specified waiting period – usually between 30 and 90 days – to maintain your bill payments for up to two years. This kind of insurance isn’t compulsory but it can provide peace of mind should you find yourself in a situation where you need financial assistance.

Regardless of whether you decide to take out mortgage protection insurance, it is important to consider how you would be able to keep up your mortgage repayments if the worst were to happen. There are a variety of options available depending on your individual circumstances, and each may offer different levels of coverage and value.

If you take out any insurance policies it is important that you are covered up to the correct amount for the correct amount of time, whether this be set by age or number of years. If you are underinsured, your insurance provider may not pay out if you claim as you haven't got the right policy set up.

We will review the different providers that we have access to and compare quotes, this will enable us to find the most suitable policy for you, this is the process for all types of cover. Any pre-existing medical conditions will be assessed by underwriting and may affect your monthly premiums.

Life insurance

Life insurance will give your family members peace of mind at the time of your passing when it comes to sorting out your finances. Life insurance policies will pay out a tax free lump sum payment if you are diagnosed with a terminal illness and in the event of your death.

First of all, a financial advisor will discuss each life insurance quote and your budget around the life insurance cost. If you are unsure of how much cover you need, they will discuss this with you so you have the correct amount of cover for you and your mortgage, before a life insurance application is submitted. Each life insurance provider can vary when it comes to what they cover if a claim was to be processed.

We can set your policy up in single or joint names, and you also choose how long you would like the cover amount to be for and the amount you want to be covered up to. A joint policy will work the same as two separate policies as both people named will be covered, and the monthly payment will be combined for both policyholders.

The two types of life insurance policies are:

Decreasing life insurance - the pay out decreases in line with your mortgage balance, you will only receive what your mortgage is worth at the time

Level term life insurance - the amount that pays out remains the same from the application point, throughout the term

It is important to do your research and thoroughly consider all the options before making a decision – that way, you can be confident you have chosen the best solution. Life cover isn’t something you need but it is beneficial to have.

If you add critical illness cover to your policy you will be covered for more illnesses. This helps your family cover everyday living costs or pay off a mortgage if you are no longer around.

Critical illness cover

Critical illness cover can be taken out at the same time as your life insurance policy, this means you will have more cover, it will incur an additional cost, and both policies will run alongside each other, this just means that you will be covered for more severe or long-term illnesses that life insurance may not cover.

The main illnesses this type of insurance covers are:

• Heart attack
• Stroke
• Multiple sclerosis
• Cancer
• Permanent disability
• Benign brain tumour

Income protection

This type of policy is available to you if you have a medical condition or have been in an accident that has stopped you from being able to do your job due to ill health. If you are covered within your current employment, then we will factor this in when setting up your insurance policy.

The last thing anyone wants is to fall behind on their bills when recovering from an illness or injury, this will give you the financial protection you need. You will still receive a regular income and help you cover any financial commitments.

Mortgage Insurance UK

The amount of mortgage protection insurance you will need depends on the size of your mortgage and your personal circumstances, so it is important to make sure you speak to an independent financial advisor or specialist adviser to ensure you have the right level of coverage. They will be able to discuss with you all the possible options that are available to enable you to make an informed decision about what is the best protection for you.

We will do a quick medical history screening with you for all policies, either over the phone or face to face, whichever you feel most comfortable with, this consists of a range of questions regarding your health and lifestyle.

Make sure to shop around and compare policies to ensure that you are getting the most value for your money. Ultimately, your mortgage protection insurance will provide financial security should something unexpected happen and help keep you and your family financially secure. However, it is important to remember that it is not a substitute for an emergency savings fund and it does not provide income protection benefits.

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By doing your research, you can find the right level of mortgage protection insurance that works for you and your family – giving you more peace of mind should something happen.

If you are interested in an insurance policy speak to a financial adviser at 0151 662 0188 or email [email protected]