Summit Mortgages
Insurance and Protection
Whether you’re concerned about adverse health conditions, high-risk occupations, or age-related challenges, there are often tailored solutions available. Let our experts review your situation and find the right insurance and protection options to safeguard your future and provide peace of mind.
The basics of
Protection
Your first thought when you think of protection may not be personal mortgage protection. We’re often happy to protect our cars, travel plans, property and even mobile phones but protecting ourselves seems to come bottom of the list.
Although, in reality, our personal ability to earn and provide an income for ourselves and our families should be a priority – this fundamentally supports everything that we do.
What if
Me or my partner die during the term of my mortgage?
The death of an individual will have significant impact, there is no denying this. If they were also party to a mortgage commitment, there could be additional severe financial consequences. For example, could the remaining party continue to meet the mortgage obligations as well as the normal household expenditure, on their own? For many, the answer to this might well be ‘no’. So, what can you do to avoid this;
Life insurance – this is a lump sum payment that can be matched to the term and value of your mortgage, paid in the event of death. Available on both a decreasing arrangement, to match a capital repayment mortgage, or, a level term arrangement, to match an interest only mortgage.
What if
I’m diagnosed with a Critical Illness?
It’s a harsh reality that a critical illness can strike any of us at any time. With 1 in 2 of us being
diagnosed with cancer during their lifetime alone, this is something that happens, and often.
A critical or serious illness will very likely affect our ability to work and this can then have financial
implications on affording your mortgage. Therefore, how can you avoid your home being at risk;
Critical Illness Cover – this is a lump sum payment that can be matched to the term and value of your
mortgage, in the same way as life insurance, or, you can choose to opt for a different value to cover
anticipated costs and expenses.
What if
I’m unable to work due to accident or sickness?
With employee benefits becoming less ‘beneficial’ you may find you’ve got less cover than you think.
An employer has no obligation to offer sickness benefits which means you might be placed on
Statutory Sick Pay (SSP) straight away. This is a minimal income and although this might be sufficient for a short period, could you afford to survive on this for the long term?
Income Protection – This is a monthly income benefit to assist in covering your household expenses in the event of being unable to work due to an accident or sickness. You can choose to cover up to 70% of your gross income. There are also additional options, such as; when you’re able to start making a claim and how long the cover will pay out for, these can all be adjusted to tie in with your own personal needs.
What if
I’d like additional protection for my family?
Protecting your mortgage in the event of unexpected death during the term of your loan can be an important consideration but what about the rest of the household expenditure?! Covering utility bills, grocery shopping, transport costs and childcare amongst other things can be very expensive.
Family Income Benefit – this is a monthly income received in the event of death to support your family expenses. You can choose how much you’d like your family to receive each month and for how long.
As with all insurance policies, conditions and exclusions will apply. The cost of this insurance depends on several factors, such as your age, where you live and your occupation. As a result, the cost you will pay is based on your own circumstances.
