Insurances

Don’t take risks with your home

Did you know, that at any one time, there are 200,000 people in the United Kingdom who are unable to work due to temporary illness and that 1,500,000 are unemployed. Did you also know that there is no government assistance to pay your mortgage until you have been off work for 39 weeks and that, even then, they will only consider paying the interest? Do you think that a lender will be understanding if you don’t pay your mortgage for nine months?

How can you protect yourself?

By arranging accident, sickness and unemployment insurance (ASU). ASU usually starts paying out after 30, 60 or 90 days, the deferment period. The longer you delay receiving payment, the cheaper the insurance becomes. You can usually insure yourself for a set period of time,12 – 24 months.

What would happen if your spouse or partner died?

These days, mortgages are often lent on the basis of two people in the family working. Now what would you do if your spouse or partner died for one reason or another? How would you make the mortgage payments? The answer is to arrange a form of life insurance known as mortgage protection. In the event of one person dying during the term of the mortgage, the insurance will repay the mortgage completely. This type of life insurance is arranged on a decreasing basis as your mortgage is reducing in size year by year (this does not happen with an interest only mortgage). You should also consider, however, that the loss of your partner may mean a greater loss of income than the mortgage payment and you may need to insure yourself for a larger amount.