Once your mortgage is approved you can look to the future with excitement. However, it may also be wise to consider safeguarding yourself and your loved ones with financial protection when you might need it most. Hard as it may be to think about, it is important to consider how you might maintain your standard of living and pay your bills if difficult circumstances arise.
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Mortgage Protection
Cowens can also provide independent financial planning advice to help protect you against unforeseen circumstances that could affect your ability to meet your financial obligations, such as:
Life Insurance
This ensures your loved ones are financially secure should the worst occur in terms of death or terminal illness.
If you have a mortgage you might want to take out life insurance. Some lenders might ask you to take out life insurance as part of their mortgage offer. Should you die before the policy ends, the lump sum can be used to pay off the outstanding mortgage balance so your family can stay in the home.
But how much life insurance do you need? What type of policy should you choose? What can you do to ensure your loved ones have the financial support to continue and maintain their lifestyle after you’re gone. We’re on hand to provide all the information and reassurance you need.
Critical Illness Cover
This cover can help protect and minimise the financial impact on your family should you suffer a defined critical illness (typically cancer, a heart attack or a stroke). It allows for the payment of a tax-free sum that can be used at your discretion, whether to cover health-related costs, maintain your standard of living by covering monthly expenses including your mortgage, or replacing lost income whilst you recover.
Income Protection
If you have a mortgage or family members depending on your income, you may also want to consider Income Protection, also known as permanent health insurance. This can help ease financial stress should you be injured or diagnosed with an illness or disability that means you are unable to work. It can be tailored to account for any sick pay accruing from your employer, meaning you only pay for the cover you actually need.
Building Insurance
Ensuring your home and its contents are fully insured is usually a condition of a mortgage offer. Our colleagues at Cowens Private Clients are able to advise and set up suitable policies.
Get in touch with a friendly, expert Cowens adviser to find out more
