Why do I need mortgage protection?

Peter McGregor explains the importance of mortgage protection and identifies the peace of mind that it can provide.

Taking on a mortgage for a property will usually be the biggest financial commitment in any individual or couples life. When arranging the most suitable mortgage for your needs, it is really important to also consider the most suitable protection for your mortgage.

The biggest threat to a mortgage would be if an individual is unable to earn an income through incapacity caused by a critical illnesses or long term sickness. In the case of those in joint mortgages or with dependents, consideration also needs to be given in regard to the death of the mortgage payer.

Insurance

Alleviate the financial burden

You can however take out insurance to alleviate the financial burden that this may cause. A decreasing term, life and critical illness policy can be purchased at the start of a mortgage to match the term of the mortgage.

The policy is designed to guarantee that the remaining portion of the outstanding mortgage, in the event of a policy holder either dying or being diagnosed with a critical illness, is paid off. The diagnosis of a critical illness can have life changing implications and can happen without rhyme or reason to even the healthiest of individuals and this is why it is essential to protect against it.

Not all illnesses are critical, but many may keep an individual from working for lengthy periods. Most good employers offer sickness benefits in addition to statutory sick pay. Most of these benefits tend to run out after a given period, so what can be done to protect your income and ability to pay your mortgage in this event?

Income Replacement - a good idea for many

An Income Replacement Policy is designed to pay a regular income in the event of an individual being off from work due to long term illness. The amount of cover can be tailored to match the exact requirements of income needed and the benefits of the plan designed to begin to pay out at the end of any employer benefits.If you fail to keep up repayments on your mortgage your home may be repossessed.

Let ESPC Mortgages help you to make sure you have the proper protection in place. For full whole of market mortgage and protection advice come and talk to us today.

About Peter


Peter McGregorPeter McGregor is an Independent Mortgage and Protection Consultant who helps clients to find the mortgage that best suits their needs after analysing their personal financial circumstances. Call Peter 07844 185 576.

Call him on 07810 522 422.

Read some of our other articles

 

The initial consultation with an adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £350 (£295 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.