The Mortgage Brain

Insurance

Cover for your mortgage:

• Buying a home is a big commitment and it can be a good time to review all your arrangements.
• You need to make sure you protect your home financially too. This means making sure that you have sufficient cover in place to protect your mortgage in any eventuality.

Life Cover:

• This helps make sure that your dependants have the money to repay the full loan if you were to die.

Critical illness cover:

• Many people who survive a serious illness cannot work again. If you suffer one of the illnesses covered by the policy, the benefit paid out could provide the money to repay the loan, or support any other expenses such as long term care.

Mortgage payment insurance:

• If you are unable to work because of an accident or an illness, or you become unemployed and cannot keep up your mortgage payments, you could lose your home.
• State benefits have been greatly reduced in recent years. If you do not have other means to repay the mortgage, it is recommended that you take out insurance to offer protection in these circumstances.

Buildings and Contents:

• It is usually a condition of your mortgage that you take out 'buildings insurance' to protect your home. If you have a leasehold property, you should check the terms of your lease to ascertain your buildings insurance requirements.
• For your peace of mind, it is also important to arrange adequate 'contents insurance' so your belongings are covered against things like fire, theft and flood. Ask your mortgage adviser for further information on how they could help you.