Mortgage Protection & Insurance

Mortgage protection, income protection, home insurance are broad terms for the different types of insurance that you need to consider when purchasing a property. Some sort of insurance is a must for homeowners, whether it be a first time buy, home move or buy to let property.

Buildings insurance

Home insurance

Family income benefit

Decreasing term assurance

Contents insurance

Home insurance is a term that most people are familiar with. This insurance for households and landlords must be in place in order to protect a building and its contents from a risk event.

The lender will insist that a mortgaged property is adequately insured against damage or destruction. As the property is the security for the loan, the policy must meet the lenders standards. As a property owner, it is also very important that insurance is in place.

Items that are physically attached to the property will be covered by a buildings insurance policy. This will include, fitted kitchens, fitted wardrobes, window glass and sanitary ware.

Critical illness cover

Contents insurance is usually purchased as part of a combined buildings and contents policy. If you are currently renting your property, you can buy a standalone contents policy, designed for tenants.

Decreasing term assurance is a life insurance policy designed to cover your mortgage balance in the event of your death. The amount of benefit decreases as your mortgage balance decreases. Premiums remain the same for the term of your policy.

Family income benefit is a life insurance policy that pays out a monthly benefit rather than a lump sum. This type of insurance policy can also be used for critical illness cover. FIB can be a cost effective option to protect the household income should you no longer be able to provide for your loved ones.

Critical illness cover is usually taken out alongside life insurance. The policy pays out a lump sum on death or earlier critical illness (as defined by the policy). This type of policy is known as level term assurance. The benefit amount remains the same for the duration of the policy. You can choose to increase your premiums so that your benefit amount increases in line with inflation.

Income protection

Income protection, also known as permanent health insurance (not to be confused with Private medical insurance(PMI) is an insurance policy designed to protect your income should you be off work due to sickness or accident. Deferment periods and cover periods can be modified to suit your own circumstances.