Financial protection for you and your family
If you're taking on the financial responsibility of owning a property, you may want to make sure you and your family are financially protected should your circumstances change. But getting your head around the various options when you're in the midst of buying a property can seem overwhelming.
You shouldn't have to add this responsibility to your list. At Bournemouth Mortgages, we have specialist knowledge of the insurance market and can guide you through the best options.
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Call us now to talk through your requirements so we can search for the product that is best for you. Giving you peace of mind, and allowing you to get back to your property plan.
Life, Health and Income protection FAQ's
Can the mortgage be fully repaid if the unexpected happens?
A mortgage life insurance claim typically pays out as a lump sum. It’s designed to protect your loved ones if you pass away before your mortgage has been paid off. It will provide them with a lump sum so they can clear the mortgage debt and have one less financial burden at an already difficult time.
Who will cover the mortgage payments if I pass away?
Level Term Life Insurance:
This will provide your dependants with a level lump sum should you pass away within the term of the policy. EG. £100,000 life policy over a 25 year term will pay your dependants £100,000 if you pass away within the next 25 years. This is therefore most common with Interest Only mortgages.
Decreasing Term Life Insurance:
Sometimes known as a decreasing mortgage insurance. This will provide your dependants with a lump sum should you pass away within the term of the policy. The amount paid out depends on how far into the term of the policy your claim is made. EG. £100,000 life policy over a 25 year term will pay your dependants £100,000 if you pass away within the first year of the insurance but this amount will decrease over the 25 years down to almost £0 in the 25th year of the policy. This is therefore common with Repayment mortgages.
What if I became sick and couldn’t work?
Critical Illness Insurance:
If you suffer a qualifying critical illness which does not result in your immediate death, you will receive a lump sum pay out to do with as you please. To qualify for a payment your illness or injury must first be one of the conditions covered by the provider and secondly, be at a pre-stated severity.
Could my family still receive my salary?
Family Income Benefit:
This will provide your dependants with an income if you were to pass away during the term of the policy. For example: your youngest child is 3 years old and you want to ensure that he/she will be financially secure until aged 18. You would take out a Family Income policy for £12000 per annum (amount is your choice), over a 15 year term. This would then provide whoever may be caring for your son/daughter an income of £1000 per month until the end of the 15 year term.
How can I keep up repayments if I'm unable to work?
Income Protection Cover:
This will provide you with an income if you were unable to work due to illness or injury. The term of the cover can run for the term of your mortgage or until a specified age. For example: if you were diagnosed as having a debilitating illness, which meant you were no longer able to work and you had a policy of £1000 per month until you reach age 65 then that’s exactly what you would receive.
Unemployment Cover:
Covers you only if you're made redundant.
Accident and Sickness Cover:
Covers you only if you have a long-term illness or suffer a serious injury.
Accident, Sickness and Unemployment Cover:
Covers you if made redundant and if you have a long-term illness/suffer a serious injury.
As with all insurance policies, conditions and exclusions apply.