Purchasing a property is an exciting prospect but have you thought about how you can prepare if your financial circumstances ever change in the future? Or how your family will cope if you happen to pass away before your mortgage has been repaid?
The best way to get ready for these unforseen events is to purchase financial protection which will provide cover at the time you need it most. These types of policies will support you and your dependants in the event that you are diagnosed with a critical illness or die and will help to avoid the loss of your home or serious debt.
Critical Illness Cover (CIC)
Critical illness cover can be taken out at any time and will pay a tax-free lump sum if you become too unfit to earn due to severe or critical illness. This type of protection cannot be used as savings or an investment and the cost of CIC depends on personal circumstances, including; age, income, lifestyle and medical history.
This cover can vary and will need to meet particular illness or medical criteria according to the policies set out by an insurance providor.
Life Cover will keep your family safe from home repossession and reduce the impact on their financial situation in the event of your death before the end of mortgage term.
Life cover, also known as life assurance will absorb the costs associated with your mortgage agreement or provide your loved ones with help towards bills, debt or childcare costs. This can significantly reduce the worry for your family in difficult circumstances and give you the assurance that the people closest to you will be protected when you are no longer able to care for them.
This type of insurance can be taken out solely by the main earner or as a joint policy to cover all eventualities. The biggest benefit of taking out life cover or critical illness cover is the peace of mind that you and your family will be kept financially safe if the worst should happen. In the case of serious illness, a huge burden will be lifted so you can focus on often lengthy treatment or recovery from your illness. In the event of your death, your legacy is that your loved ones won’t have to worry about the added stress of financial strain while they grieve.