Its not a happy conversation to have, but talking about protection when buying a house is essential and practical. There are many different types of protection available and I can talk you through your options and help you make a decision to look after not only your house, but also your family and of course you! As with all insurance policies, conditions and exclusions will apply.
This kind of protection pays out a lump sum of money designed to pay off your mortgage in the event of your death. You can also have life insurance to give family an amount of money over & above the mortgage debt, to ease the financial struggles for the future.
Critical Illness Cover
There are many definitions of a critical illness. Most people will know someone who has suffered from the main ones, such as cancer, heart attack or stroke. But most insurers actually cover a huge range of illnesses, and again this cover is designed to pay you a lump sum of money if you are diagnosed with a critical illness, again to pay off a mortgage debt and/or give you some extra money to help you get back on your feet after an illness.
This type of cover is designed to help you out if your income were to stop due to accident or sickness, and instead of paying you a one-off lump sum, will actually give you a monthly income to cover your mortgage and lifestyle for a set amount of time.
This is commonly known as Building and Contents, and covers your home and your belongings in the event of fire, flood theft etc. Buildings Insurance is a legal requirement when you have a mortgage so its very important to get this cover in place so as to not delay getting your keys to your new home.
Do I have to take insurance out when I have a mortgage?
A legal requirement of having a mortgage is that you have Buildings Insurance, but all other types of insurance are optional.
How much does insurance cost?
It varies, depending on your age, the amount of cover you require and the time you want to be covered for. Also it depends on your medical history and personal details.