Taking out a mortgage is a long-term financial commitment and precautions should be taken to ensure that regular payments could be met throughout this time. It is therefore worth taking out a life/critical illness insurance policy on those parties named on the mortgage deed to ensure that if either party was to die or suffer a critical illness that the mortgage would be paid off in full. We can provide a choice of mortgage protection plans to suit you requirements.
As a mortgage is usually one of your highest outgoings every month it is vitally important to be certain that you have enough money to meet your repayments if you are made redundant or suffer an accident or sickness.subject to eligibility, you may be entitled to receive some financial help with your mortgage payments through the state benefit system, but a number of restrictions may apply. As the benefits and welfare system can be complex, it is advisable to check eligibility. In the past for example:
- If you were taking out a new mortgage or re-mortgage, you would not receive any help with your repayments for the first 9 months of any unemployment or disability.
- If your partner worked for more than 16 hours per week, or you and your partner had substantial savings, you would not receive any help with your repayments.
- The payment of state benefit only applied to mortgage interest. It did not cover your capital repayments, or any related costs such as life assurance and home insurance.
- Any state benefit you receive was limited to the first £100,000 of any amount that you borrow.
If you fall behind with your mortgage payments and you are unable to repay the debt you could end up losing your home. There are plans available which would pay you a regular fixed monthly income to ensure that your mortgage is paid in the event that you are either made redundant or are unable to work due to accident or sickness. Cover is normally available for up to 12 months.
This type of cover is available to both the employed and self-employed.
Not only is it vital to insure your property it is also a requirement of all lenders that your property is adequately insured. Proof of this is required before they will release the funds necessary to complete your purchase. Most lenders also require you to have them as a named interested party on the policy.
Buildings cover needs to be placed on risk upon exchange of contracts, as from this point you are legally bound to purchase the property. Generally it is cheaper to have both buildings and contents policies with the same insurer.
At Simply Money we have access to highly competitive 5* rated insurance products, which we can tailor to suit your personal needs.
For all protection products we usually offer products from a selected panel of providers. For accident, sickness & unemployment cover and buildings & contents insurance we usually offer products from a single provider. The reason for this is that the policy is a 5* Defaqto rated plan which fully meets the needs of the lenders.