Insurance

In your best interest

Although it is not compulsory to take out protection when you get a mortgage there

are many reasons why you might nonetheless need Mortgage Protection

Insurance A mortgage is a huge financial commitment that takes decades to repay,

so it makes sense to protect it in case you can’t work at some point during the

mortgage term.

If you had to default on your mortgage through accident, sickness or unemployment,

you’d lose everything you’ve worked so hard to build. In most cases its not worth

taking the risk for the small amount of premiums that need to be paid each month to

achieve a peace of mind.

Mortgage Payment Protection Insurance

Cover For All Eventualities

Mortgage Payment Protection Insurance (MPPI) covers your mortgage repayments

should you suffer from an accident, sickness or unemployment.

· Should a claim arise it will pay out a monthly income that allows you to keep

up with your mortgage repayments for up to 12 or 24 months.

You can cover an additional 25% of the mortgage repayments to help meet

other costs, such as bills and everyday expenses.

What does mortgage insurance cover?

There is flexibility in the type of risk you can protect with MPPI, although naturally the

more risk you wish to protect the higher the overall cost. You can opt to protect

against the risk of illness or injury as a standalone policy – the same goes for forced

redundancy – or you can combine the two.

Accident & damp; Sickness Insurance

This will cover your monthly mortgage repayments should you be

unable to work due to illness or injury. When considering Accident and

Sickness Insurance it is important to check the policy wording to make

sure the insurer uses an ‘Own Occupation’ definition.

Unemployment Insurance

Unemployment cover will make sure you can meet your monthly

mortgage repayments should you be made forcibly redundant through

no fault of your own. To claim your benefits, you will need to be

registered with the relevant government agency as unemployed and be

actively looking for work.

Life insurance

Peace of Mind

This is typically a Decreasing or Level Term Policy where the amount insured

matches the value of the outstanding mortgage and it provides a one-off tax-free

lump-sum payment to settle your mortgage in the event of your death.

Life Insurance protects families from financial hardship by paying out a one-off tax-

free lump-sum if the policyholder dies during the term of the policy. The money can

be used to pay off mortgages and other outstanding debts as well as providing a

source of income for everyday living.

Premiums are paid monthly and the cover is set for a fixed period of time, often for

the length of a mortgage or up to the age of retirement. The amount of life insurance

cover varies according to how much you can afford and how much cover you think

you need to pay off debts and provide day to day income.

The cost of the insurance is affected by various factors including the sum to be

insured, existing health conditions, lifestyle issues like smoking and high BMI, age,

occupation and any regular dangerous pursuits.

Insurers historically pay 99% of all life insurance claims – when they don’t pay out, it

is usually because the policyholder was not truthful on their initial application about

an existing health condition or a regular dangerous pursuit which led to their death.

Critical Illness Cover

Prepare for the unexpected

Critical illness cover protects families from financial hardship by paying out

a one-off lump-sum if the policyholder suffers a serious illness like cancer or a

stroke, or a permanent disability caused by injury during the term of the policy. The

money can be used to pay for medical treatment or rehabilitation or pay off

mortgages and other outstanding debts as well as providing a source of income for

everyday living.

Premiums are paid monthly and the cover is set for a fixed period of time, often for

the length of a mortgage or up to the age of retirement. The amount of Critical Illness

Cover varies according to how much you can afford and how much cover you think

you need to pay off debts and provide day to day income.

The cost of the insurance is affected by various factors including the sum to be

insured, existing health conditions, lifestyle issues like smoking and high BMI, age,

occupation and any regular dangerous pursuits.

Income Protection Insurance

Plan for the Unknown

Income Protection Insurance pays out a sum of money every month in the event

that you are unable to work due to sickness or injury. The money can be used to

cover your regular expenditure like mortgage payments, household bills and other

living expenses.

Premiums are paid monthly and the cover is set to pay-out for a period of time, either

short term (1-5 years) or up to the age of retirement. The amount that the income

protection policy will pay out every month is typically limited to 65% of your monthly

salary or income.

The Premiums are affected by various factors including the monthly sum insured,

salary, existing health conditions, lifestyle issues like smoking and high BMI, age,

occupation and any regular dangerous pursuits.

A good way to reduce the cost of the premiums is to defer when the policy pays out

after a claim is registered. It is worth considering whether your employer offers any

sickness benefits or whether you have any savings to extend the deferment period.

Buildings Insurance

Protect your Asset

Buildings insurance is a specific form of home insurance While it’s not compulsory, it could be worth considering if you’re a homeowner.

The concept behind buildings insurance is simple – it covers the cost of putting right any damage to the structure of your home. As well making sure you can afford to repair the damage when things do go wrong, it provides peace of mind even when things don’t.

Buildings insurance covers the cost of repairing or rebuilding your home if it’s damaged or destroyed by:

• Fire
• Lightning strike
• Storm damage
• Falling trees
• Explosion (caused by gas leaks etc)
• Earthquake
• Vandalism
• Vehicle collisions with the building
• Burst pipes or freezing of the plumbing
• External garages, sheds and fences tend to be covered, as well as
• the cost of replacing items such as pipes, cables and drains.
• Permanent fixtures might also be covered. This includes the:
• Roof
• Walls
• Ceilings
• Floors
• Doors
• Windows
• Fitted kitchens
• Built-in cupboards
• Bathroom suites

Contents Insurance

Secure Your Valuables

Contents insurance covers your household possessions against loss, damage or theft. If your home is unfortunately hit by fire, flood or burglary, it’s important to have the right insurance cover in place to put things right.

Contents insurance is optional, but it could be worth your while.

Contents insurance is for your belongings. Generally it’s what

could go in the removal van if you moved house, plus fittings such

as carpets and curtains.

Typical things covered by a contents insurance policy are:

• Floor coverings – carpets and rugs.
• Furniture – tables, chairs, sofas, beds and wardrobes.
• Soft furnishings – curtains and cushions.
• Electronics – TVs, laptops, phones and games consoles.
• Appliances – ovens, hobs, fridge freezers, washing machines
• and microwaves.
• Eating and drinking – utensils, cutlery, china, glasses, food
• and drink.
• Valuables – jewellery, art and ornaments.
• Sport and leisure – sports equipment, bikes, computer
• games, musical instruments, books and toys.
• Garden and DIY – garden furniture, mowers, ladders, hot tubs
• and tools.
• Linen – towels and bedding.
• Clothes and shoes.

Contents insurance mostly doesn’t cover:

• General wear and tear.
• The structure of your home, such as walls and the roof. This
• would be covered by buildings insurance.
• Mechanical or electrical breakdown when item reaches
• natural end of life.
• Little cover when your home is empty for a long period.
• Anything that’s over the limits on the value of possessions
• they cover, specified in the policy.