Mortgages & Money   Mortgage Guide


Income Protection

Should you fall ill or lose your job, an income protection policy will ensure that you are not left suddenly penniless. There are policies tailored specially for the self-employed (though premiums are likely to be higher). As with Mortgage protection, check to see how long a period your policy will provide for, and whether the payments will be the equivalent of your usual income or a proportion of it. Some policies accrue a value over time, and can then be cashed in. These are termed 'investment-type' policies.

Mortgage Protection Insurance

This policy provides the security of knowing that if you have a sudden change in circumstances, the insurer will pay your mortgage to safeguard your home from possible repossession. Mortgage protection will usually pay for a certain length of time; check your policy for details.

Private Medical Insurance

Private health or medical insurance can mean you will receive faster treatment than you would on the NHS. Some companies offer superior accommodation as well as prompt care. Your employer may offer health insurance as part of your package, check to see what is covered.

Life insurance & critical illness cover

If you have dependents, you may want to consider taking out a life insurance policy. Then, if the worst happens, you know that they will not be left without provision. Some mortgages demand that you take out life insurance as a condition of the offer. As with income protection, some life insurance policies are 'investment' policies that will pay dividends after a certain period of time. However, premiums for these policies are likely to be much higher. These include a wide range of investments such as bonds or endowment policies - shop around for one that suits you. Critical illness cover ensures that if you are diagnosed with certain serious or life-threatening illnesses, you will receive a lump sum.

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