Protecting Your Mortgage

The Importance of Protection (Maybe a picture of different size shoes lines up for a family?)

Many of us will know someone who has died or suffered a critical illness, which can have devastating effects on those around them.

Whilst our lives may be going well, none of us know what is around the next corner, but it is at this point that plans should be made, so should something go wrong, you are protected and your finances do not become a problem.

For most people, their mortgage is their largest financial commitment and, should the worst happen, it would be good to know that your mortgage payments will be maintained.

Protection does not need to cost the earth. And lots of people are finding that even a relatively small amount of cover helps their families cope when disaster strikes.

Types of protection available:

Life Assurance – Life Assurance gives you the comfort of knowing that your loved ones will be provided for should you die. There are many different ways to arrange life cover and we can help you find the most appropriate plan available

Critical illness cover (CIC) – CIC is similar to Life Assurance but it pays out on diagnosis of certain illnesses as opposed to only paying out on death.

Income protection – This offers borrowers the security of knowing that their essential repayments will be made if they are off work due to an accident or sickness.

For example, if you are in an accident and are unable to work for a while, a lack of comprehensive income protection cover means you will rely solely on state benefits, which are unlikely to be sufficient to meet your mortgage repayments, let alone any other essential spending. Did you know that statutory sick pay is currently only £88.45 per week paid by your employer for up to a maximum 28 weeks! What would that cover in your household?

Accident, Sickness and redundancy cover – this can give you peace of mind knowing that, in the event of redundancy or illness, your mortgage payments will be made and your home will be safe.

Buildings and Contents – Buildings insurance will cover your home from such events as fire, flood and subsidence. Contents insurance will protect your valuables, furniture and sentimental objects in the same events. They can also protect against accidental and pet damage.

Most standard mortgages do not have any protection insurance included, so it’s important to decide what kind of separate cover you need.

At Gravity Private Finance, we offer advice on all aspects of the home buying process and make sure you have peace of mind in any event.