Let's talk about mortgage protection
If you’re thinking of taking that next step and getting on the property ladder, there may be one area that you haven’t yet thought of. It’s likely that you’ve worked out your finances and done some research online into what you can afford, perhaps you’ve even had some viewings and found a home you like, but have you considered protecting your mortgage payments once the sale has gone through? When taking out a mortgage you may be offered a protection or insurance service by your mortgage broker and it’s an important one to think about. After all, what would happen if you were unable to make payments on your mortgage for one reason or another? Mortgage protection comes in many forms, from critical illness cover to life assurance and even income protection and there is probably a variation on these forms available on the market to cover your specific circumstances. These services can provide reassurance when taking out a large loan like a mortgage and can cover you in the case of losing your job or source of income, as well as serious illness or accident.
Insurance exists to protect us in the event of hardship and to provide some security. Most of us accept that home insurance is an essential when renting or buying a property, yet often don’t consider mortgage protection. If it makes sense to protect your home and contents, why not yourself and your family? There is, of course, a cost involved but the amount you will pay for mortgage protection varies and can be affected by certain factors. Age is perhaps the most obvious; generally speaking, the younger you are, the lower the cost. Health also plays a large part – being a smoker or having higher levels of alcohol consumption can mean higher costs for life assurance and even factors like your height and weight (your BMI) can significantly affect how much you pay in premiums or whether you’ll even be eligible for life assurance. Some occupations are also considered to be higher risk and this can also result in higher premiums. Everyone has different circumstances which is why there is such a wide range of insurance and protection services available on the market, you may not require every single one, but it’s worth talking to a professional mortgage broker about the different options and which one may suit you best. Perhaps this is one situation where it’s better to have protection and not need it, rather than need it and not have it.
Everyone has different circumstances which is why there is such a wide range of insurance and protection services available on the market, you may not require every single one, but it’s worth talking to a professional mortgage broker about the different options and which one may suit you best. Perhaps this is one situation where it’s better to have protection and not need it, rather than need it and not have it.
