Mortgage and protection adviser Brian Sandiford explains why your mortgage could be at risk – and what you can do about it…
ACCORDING to the Association of British Insurers, one million workers a year find themselves unable to work due to a serious illness or injury1.
Being out of action due to unforeseen circumstances is not a pleasant thing to contemplate. However, by planning ahead you could save yourself stress and hardship if the worst does happen.
Eliminating risk from your mortgage is a great place to start.
WHO NEEDS PROTECTION INSURANCE?
A home is much more than just bricks and mortar – it’s the seat of family life, a source of pride and a symbol of security. A possession this important shouldn’t be taken for granted.
If the sudden onset of illness could result in reduced income, or no income at all (this may be especially true for those who are self-employed or would not expect to receive sick pay from their employer) – it means you are among the most likely to need coverage.
When taking on a large loan against your property, protection insurance is desirable, as it will ensure continuous mortgage repayments should you be faced with:
Redundancy, or having to accept employment at a lower income
Reduced income due to you or your partner stopping work to have a baby, or leaving work to care for a dependant
Illness or accident rendering you unable to work
PEACE OF MIND IS WITHIN REACH
I advise all my clients that they can achieve greater peace of mind by completing the following steps: budget carefully for the future, factoring in the loss or serious illness of yourself or your partner (focussing on practicalities should help to overcome any feelings of uneasiness); calculate the savings you will need to cover household expenses and maintain your lifestyle – and save accordingly; and determine the employment and state benefits you may be entitled to.
Additionally, there are a range of products available through The Financial Options Group, which can reduce undue hardship and stress in unforeseen circumstances.
In July, the company established its new Mortgage and Protection department to provide clients with direct access to friendly, straightforward advice on all financial matters pertaining to their properties. My colleague Kate Purcell and I are proud to lead this new initiative, and we are delighted to offer this valuable service to new and existing clients.
This Payment Protection Insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against the loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk
Should you wish to speak with a mortgage and protection expert about a prospective property purchase, or to receive more information on protection insurance, please email me at email@example.com; or contact my colleague Kate via firstname.lastname@example.org. Or simply call 0161 764 9944.
Follow the new Mortgage and Protection department and keep up-to-date with the Financial Options team on social media. On Facebook, find us at www.facebook.com/FinancialOptionsGroup or on Twitter at https://twitter.com/FinancialOpts
1 ABI 2017. See abi.org.uk for further details.