Protecting your mortgage repayments

We think protection advice is imperative when you have a home or family you want to protect. So, talk to us about a mortgage and we’ll talk to you about life cover.

Buying a house could be one of the biggest financial commitments you’ll make: getting a deposit together can wipe out your savings and paying your mortgage will take a chunk out of your income. So how would your family continue to meet this commitment if you stopped earning?

When taking out a mortgage, it’s essential to consider how you would continue to cover your mortgage payments if you fell ill or died unexpectedly. There are a number of ways you can do this:

Life Insurance

If you died suddenly, a Life Insurance policy would pay out a cash sum to your dependents. They could use this to pay off their mortgage and keep the roof over their heads.

Mortgage Payment Protection Insurance (MPPI)

Also known as Accident Sickness and Unemployment (ASU) cover, MPPI covers your mortgage related repayments if you can’t work because of redundancy, accident or ill-health. Benefits are usually paid for 12 months although some providers offer 24 months’ cover.

Critical Illness Insurance

Critical Illness Insurance pays out a lump sum if you’re diagnosed with a specified critical illness such as cancer, stroke or heart attack. You can use the cash payout to clear your mortgage, pay for medical treatment, take time to recuperate or anything else you choose.

Income Protection

Income Protection can replace part of your income if you’re unable to work for a long time due to illness or disability. It will pay out until you return to work or the policy ends – whichever happens first.

Income Protection plans usually have a waiting period before the benefit becomes payable.

Choosing to protect yourself

When you take out a mortgage through us, we’ll ask if you want to take out protection as well. What’s more, we will analyse your lifestyle and any protection shortfall and recommend a protection plan that will help protect you and your family from the financial consequences of serious illness or death.