Protection for You and Your Loved Ones
Taking out a mortgage could be the biggest financial commitment you will ever make. This is why it is critical to make sure you have the right protection in place so that you are covered if anything unforeseen happens. After all, we all know that life likes to throw up the unexpected! With mortgage protection, you and your loved ones can have peace of mind.
What Would You Do?
We all insure our cars, pets, and even our smartphones, yet we tend to have inadequate protection when it comes to ourselves and the people we love. The statistics show us that one in two people will get cancer in their lifetime. This shows why it is always a good time to take a look at your insurance policies and the protection you have in place.
It Won't Happen To Me
Every day we hear about someone being involved in a serious accident or losing their job. Of course, no one likes to think about these circumstances and some of us have the “it won’t happen to me” mentality. However, you never know what is around the corner, and if you are left in a position whereby you cannot pay your mortgage, it can be extremely stressful and scary. This is why having the right insurance protection is imperative so that you can fund your mortgage while also having enough money to cover everyday expenses and protect your family’s lifestyle should something unexpected happen.
Personalised Protection
When you are purchasing a house, our mortgage advisers will talk you through all of the different insurance policies that are available. We will help you to understand each policy, as well as the benefits and drawbacks associated with them. We will assess your financial situation and talk to you about your goals and aims, and this will help us to make personalised recommendations based on your situation. We will then be able to present you with a number of different products, ensuring the most competitive prices so that your budget goes as far as possible. We can also assist if you have already arranged a mortgage yet you have not got financial protection in place and you want to take action.
Protection Polices Available Through Think Plutus
Life Insurance
You'll be covered against: Death or terminal illness
Benefit paid: Lump sum
With life insurance, your dependants will be provided with a tax-free lump sum in the event of your death. Life insurance is sometimes known as term insurance, and cover can be arranged in either of the following ways:
Level Term Life Insurance: This is a policy type in which the amount of cover, known as the 'sum assured', remains consistent throughout the total length of the policy. It is often taken out in order to pay off a mortgage, and is a good fit for interest-only mortgages, in which the amount owed doesn't gradually decrease.
Decreasing Term Life Insurance: This policy also assures a lump sum is paid out if you die, but the amount of money that pays out will decrease over time. This type of policy is best suited to repayment mortgages, so that the amount paid out remains at a similar level to the mortgage payments. These premiums are usually cheaper than for level term assurance, since the amount of cover decreases over the policy length.
Critical Illness Cover
You'll be covered against: Critical illness
Benefit paid: Lump sum
Critical illness insurance exists to provide a tax-free cash sum in the event of you being diagnosed with one of a predetermined list of defined critical illnesses. You are free to use the cash sum as you like, but its intended purpose is to relieve the financial burden on you as you enter a difficult period of your life. Critical illness, as with life insurance, can be taken out as a fixed lump sum or in line with your mortgage payments.
Additional benefit options: Critical illness cover for your children.
Family Income Benefit
You'll be covered against: Death or terminal illness
Type of benefit paid: Regular income
Family Income Benefit will be paid out in the event of your death, but it differs from life insurance in that it pays regular, tax-free income instead of a one-off lump sum. This continues until the policy term ends. It is a good fit for people who would prefer their dependants to have a regular income, rather than making them manage a single lump sum.
Income Protection
You'll be covered against: Illness or injury
Type of benefit paid: Regular income
If you are in an accident or fall ill, income protection insurance can provide a regular income to decrease the impact of lost salary. You decide how many months pass before the policy begins paying out (the deferment period), and also how long it will continue paying out for (the benefit period). You can make it pay out until you are either well enough to go back to work, reach your retirement age, or reach the end of the policy term. This insurance gives you peace of mind via a regular, ongoing income to be able to keep up with bills and other expenses in the event that you fall ill or have an accident that renders you unable to work.
