Owning a home is something to be immensely proud of. If you’ve got to that point, then well done. We know that you’ve worked hard to save and pay your deposit — it’s not always an easy task.
There’s also your mortgage repayments to cover every month — which are another big financial commitment.
That’s why we admire anyone who has already, or is planning to, plant their roots and settle down for the long term.
Your own home is a haven, and a place you’ll make many of your memories. In fact, many people consider it their castle. And like any castle, it needs to have defences in place. Now we’re not talking moats and high walls, but protection insurance.
So what is protection insurance?
There are many types of life and protection insurance, but simply put, they are here to safeguard you and your loved ones from unforeseen events.
We’re not referring to castle attacks, but unexpected events such as unemployment, illness or death.
Of course, we all think things like that won’t happen to us, but it’s important to be prepared for even the worse possibilities.
Because if something happened to you, or if you lost your job, would you or your family be able to afford your monthly repayments? It’s something that’s always worth budgeting for. So when you’re considering your future costs, you should always plan for protection.
The different types of protection insurance explained:
Building insurance covers your building and permanent fixtures and fittings, and is usually a condition of your mortgage, so if you own a home, then you’ll need it. Contents insurance looks after everything else inside the property, so if you value your possessions, then it’s a good idea to take out a combined policy.
As we already know, your monthly mortgage payments are a big commitment, and are probably your biggest regular outgoing. So if you had an accident, became ill or unemployed, mortgage protection would cover this cost for up to two years — allowing you to get back on your feet without money worries.
Life insurance offers your loved ones a tax-free lump sum in the event that you die during the term of your mortgage policy. This can be used either to pay off the mortgage, or to cover other essential outgoings — giving you peace of mind that they’ll be financially stable without you.
Income protection insurance is designed to support you financially if you are unable to work due to illness or injury. The policy will pay you 50-70% of your income each month until you are able to work again.
Although a scary statistic, it’s important to remember that one in two people will be diagnosed with cancer at some point in their lives. Critical illness insurance will usually pay a lump sum if you are diagnosed with a life-threatening condition like this.
This money can be used however you see fit — to reduce your debt, pay your mortgage, replace any lost income and cover further costs that may arise, such as private treatment to avoid waiting lists on the NHS.
Redundancy insurance works by paying you a monthly cash benefit for your everyday needs, from keeping a roof over your head to putting food on the table, if you lost your employment through redundancy. While the UK economy is strong, job security can still be an issue, so it’s always worth considering.
We hope this helps to explain the differences between each type of protection insurance. Your individual circumstances will always dictate which policies are best for you, so if you have any questions we’re happy to sit down with you to ensure that you get the right coverage for your individual needs and situation.
We work with some of the UK’s leading insurance providers — so we’re guaranteed to find you competitive rates on your protection.
If you want to protect yourself, then call our Huddersfield-based advisor on 07834 818805. We provide insurance advice throughout West Yorkshire, including Huddersfield, Halifax, Brighouse and Leeds.
Please note: As with all insurance policies, conditions and exclusions will apply
Approval number: Sol6631