Protect your mortgage and repayments with Life Assurance Cover - Unemployment Mortgage Protection cover and Critical Illness Cover
Unemployment Mortgage Payment Protection, Accident and Sickness Cover
How would you pay the mortgage if you were off work for several months, perhaps through sickness or injury, or you find yourself made redundant unexpectedly. An Acciednt and Sickness Cover policy ann an Unemployment Payment Protection Policy can help in these circumstances. These policies pay a monthly income sufficient to cover your mortgage repayments and are a cost effective and simple solution for most people. Note that benefits are usually restricted to a specified level and are only payable for a maximum period, normally 12 months and sometimes 24 months.
Life Assurance Cover
Your mortgage is the biggest financial commitment that your family will ever have. If the unthinkable were to happen to you, how would they cope with a large debt and a reduced income? For a relatively small monthly premium your dependants won't have to worry about paying the mortgage, or even worse, losing the house at such a difficult time
Life Assurance is the simplest type of protection policy available. It has a specific amount of cover, known as the Sum Assured, which is chosen to suit your own needs. You decide how long you need the protection for, known as the Term.
In the event of a claim during the Term the Life Assurance company will pay to you, or your beneficiaries (or dependants) the Sum Assured as a tax free lump sum. When you survive the term the policy ceases.
What Cover Do You Need? There are different types of Life Assurance and you may wish to discuss them with an advisor
Life Assurance - Mortgage Protection
This is specially designed to protect a normal repayment mortgage. The level of cover is set to match the original mortgage amount, and reduces over the years as you pay your mortgage. It is sometimes known as a decreasing term assurance policy and usually guarantees to pay off the outstanding Mortgage, assuming the mortgage interest rate payable does not exceed a certain rate. If you have taken out a flexible style mortgage this policy may not be suitable.
Life Assurance - Level Term
In this case the life assurance cover is constant throughout the specified term. For example a £100,000 level term policy taken over 10 years means that if you die within 10 years then £100,000 will be paid to your estate tax-free (although inheritance tax may need to addressed). This type of policy can be used to protect an interest only mortgage, or where necessary, a flexible style mortgage. The premiums remain the same throughout the term.
Critical Illness Life Assurance Cover
As the name suggests this cover provides for a lump sum payable on the diagnosis of a serious illness or disability. If you survive the diagnosis for more than 28 days you will receive the Sum assured as a tax free lump sum. The money is yours to keep even if you make a full recovery. Some of the most common diseases covered are Cancer, Most types of Heart disease including heart attack, coronary artery bypass, angioplasty, and aorta surgery.