When taking on a new mortgage, it is important that you consider the impact a change in circumstances can have.
At LB Mortgage Solutions, we pride ourselves on making sure our clients are fully aware of the options available, and we are strong believers in the protection offered by the right policy for the right circumstances.
Simple in its nature, life cover is designed to pay a sum of money upon death.
However, the difference this can make can be life-changing at a time of great loss.
Whether this is to repay a mortgage or other debts, provide a lump sum for the family or replace an income long term, the benefits can be significant.
Like life cover, this type of policy is designed to pay a lump sum of money at a time when it’s needed.
As the name suggests, these policies will pay out on diagnosis of certain illnesses, which are considered serious or critical.
The majority of claims are made on diagnosis of cancer, heart attacks or strokes, but these types of policy cover for numerous specified illnesses and conditions. This type of policy can provide the money to allow you to make choices at a time when you are battling against the unexpected. Whether the money is used to repay a mortgage and protect your home, used to seek specialist private treatment, replace an income while you recover, or allow you to modify your home to your change in circumstance, the choice is yours.
It’s easy to take our health for granted when we feel well and take the view that “it won’t happen to me”.
If you are taken ill unexpectedly then making sure you can pay your mortgage and keep the roof over your head can be an added burden at a time when you are unable to earn an income.
Unlike life cover or critical illness cover, income protection is designed to replace your income on a regular basis until such time you are able to work again or the policy ends. In most cases, you can insure for up to 60% of your earnings.
The type of protection most suitable for you will depend on your circumstances and priorities, and in some cases it may not be relevant at all. We take the protection of our clients seriously, and we will make sure you understand what is available to you, the costs involved and the limitations of any policy we arrange. We will also consider the use of trusts to make sure the money goes into the hands of those it is intended for, as fast as possible and in a tax-efficient manner.
Protecting your mortgage may not be the most exciting part of the process for you, but it may just be the most important part.
There are other providers of Payment Protection Insurance [Short-Term Income Protection] and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk