Protection – Looking after your loved ones

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Protect her, Protect him, Protect them

Whether you are embarking on your first adventure as a homeowner or have been a homeowner for a while, something that we don’t like to think about is, What happens if I die? However this is as important a question as how much can I borrow? It is also a question that should be asked more than once. Life changing events can mean that the cover you have is no longer sufficient, e.g increase in mortgage amount or birth of children.

We cannot predict when or where or how, but we can be prepared in case the unspeakable does happen. Giving you the peace of mind that the only hardship that will fall to your family is the loss of a loved one.

Protecting against death is all very well, but what if you survive?  Cancer, Stroke, Heart Attack all make you think of the worst outcome.  However the reality is if you suffer one of these you also have a high chance of survival, these chances are constantly increasing as medical science advances.

How much cover should I have?

Obviously your initial response to the above is I want to maximize my cover, however life cover does come at a price and with new or increased financial commitments, sometimes a balance needs to be struck as to how much you are able to budget towards protection. At Homeline Mortgages we can work with your budget to ensure that you have the sufficient cover you needs whilst optimizing this to get the best for your budget.

You don’t have to take out a mortgage with us to benefit from our highly competitive insurance deals. Our team of specialist insurance advisers will be happy to help you find the right life assurance deal to suit your individual requirements.

Level Term Life Assurance

You choose the amount of cover you want, this can be the amount of your mortgage or may include additional funds to provide for your family or partner once the mortgage has been cleared. The term would usually be the term of your mortgage but you can take the cover for a longer period if you wish.

If you die during the policy term your insurer will pay the amount you are covered for.

If you set up a joint policy (one policy to cover two people) the amount of cover is paid out on the first death. The policy will cease when a claim has been paid. These policies have no cash in value at any time.

There are various additional benefits that can be added to these policies. One of our advisers will discuss all of these with you and will ensure that you get the most suitable cover to match your budget and requirements.

Critical Illness

Although Critical Illness can be a standalone policy it is most commonly added to either a level term assurance or mortgage protection. Often overlooked, this is in our opinion one of the single most important levels of cover. Many of the conditions covered may leave you unable to work or less able bodied, meaning you may need to make significant lifestyle changes, or indeed alterations to your home. The lump sum paid out on diagnosis could take a lot of the pressure of you and your family at this time.

If you are diagnosed with a critical illness during the policy term your insurer will pay the amount you are covered for. You can choose the amount of cover you want, although it is usual to have this at the same level as the life cover.

The downside is that adding Critical Illness cover can make the premiums expensive, for this reason your Homeline Mortgages Adviser will work with your budget to obtain the maximum cover possible.

Mortgage Protection Assurance

(Decreasing Term Assurance)

You choose the amount of cover you want, this can be the amount of your mortgage or may include additional funds to provide for your family or partner once the mortgage has been cleared. The term would usually be the term of your mortgage but you can take the cover for a longer period if you wish.

The main difference to Level term assurance is that the sum assured decreases in line with your mortgage balance. For this reason it is suited to repayment mortgages.

The amount of cover reduces each month during the policy term and is calculated to be enough to equal the capital outstanding under a normal repayment mortgage.

If you die during the policy term your insurer will pay the amount you are covered for.

If you set up a joint policy (one policy to cover two people) the amount of cover is paid out on the first death. The policy will cease when a claim has been paid. These policies have no cash in value at any time.

There are various additional benefits that can be added to these policies. One of our advisers will discuss all of these with you and will ensure that you get the most suitable cover to match your budget and requirements.

Family Income Benefit

Family Income benefit is in effect a level term assurance, however rather than receiving a lump sum when you die, your beneficiary (wife / Children) would receive an annual income for the remainder of the term. i.e if you took out a 20 year term with a benefit for £20,000 per annum and you die in year 2 the plan would pay out £20,000 per annum for the remaining 18 years.

The premiums for this kind of cover are often very affordable and this cover is commonly added to a Level Term Assurance or Mortgage Protection. Meaning that on death your family would receive a lump sum to pay the mortgage followed by a regular income for a set period.