There's nothing more important than protecting your family and yourself. But there's so many options out there and everyone has their own ideas. So we've put together a short guide on the different types of protection products on the market so you can understand them a little better. Our advisors are experts in the field so if you have any questions or want to discuss setting up a protection policy please get in touch.
Life insurance can come in a variety of different plans but ultimately they all provide the same benefit, a cash lump sum when you die. You can have a decreasing amount so the sum assured goes down over the policy term. This is ideal to cover a mortgage so as you make repayments the amount your life insurance would pay out goes down as well, it keeps the monthly premium low whilst still covering your mortgage if you die. Other options are a level amount or increasing. A level amount pays out the same throughout the term and an increasing pays out more as the policy goes on. It can rise inline with inflation or at a % you set.
Critical illness cover sometimes referred to as Serious illness cover can pay out a cash amount if you are unfortunate enough to suffer from various illnesses such as cancer, heart attacks, a stroke and many more. Times are hard enough when you or a family member are suffering so not having financial worries can make things slightly easier.
Family Income Benefits plans provide a monthly cash amount until the end of policy term if you are no longer around. Your family are going to miss you being around however having a FIB plan you can ensure they can maintain their current lifestyle and not have to worry about money.
Income protection plans are a way of securing an income if you can't work due to sickness or injury. They can pay out a monthly benefit of up to 65% of your monthly salary. This ensures you can pay your bills and not rely of statutory sick pay (SSP) of £109.40 from the Government. If you already get sick pay from work for a certain length of time you can choose a deferred period so the plan starts paying out after 4 weeks for example to keep premiums lower and make sure a long absence doesn't cause you financial difficulties. You can choose the benefits to be paid for 1 - 2 years or until retirement.
ASU is designed as short term cover, often the term is 1 - 2 years and pays out if you are unable to work due to accident, sickness or being made unemployed. You can set up various types of cover. Mortgage Payment Protection Insurance (MPPI) will cover your mortgage repayments, Payment Protection Insurance (PPI) can be arranged to cover your loan repayments or the outstanding amount and Income Protection Insurance which would cover part of your earnings each month.
Buildings & Contents (B&C) protects you from large bills if your home or belongings are damaged or stolen. If you were to pick your house up and turn it upside down, everything that falls out is classed as contents, anything that stays in place is covered under buildings insurance. B&C policys can be set up as a pair but they can be arranged seperately. If you are currently renting you only need to insure your contents but if you own your home the majority of lenders make it a stipulation of your mortgage to have suitable buildings insurance at all times.
Landlords insurance covers you if your rental properties are damaged from storms or even accidental damage caused by the tenants. Options can be added to cover the rent if tenants do not pay, public liability insurance if tenants claim for an injury in one of your properties.
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Typically we do not charge a fee for arranging a mortgage, however the actual fee will depend on your circumstances.
Some of the products/services shown above are not or may not be regulated by the Financial Conduct Authority.
Peak Mortgages & Protection is a trading style of Mortgage 1st Limited which is an appointed representative of Stonebridge Mortgage Solutions Limited which is authorised and regulated by the Financial Conduct Authority.
Registered office: 2 Napier Court, Gander Lane, Barlborough, Chesterfield, Derbyshire, S43 4PZ
Registered company number: 06552344 – Registered in England & Wales.
Financial Conduct Authority reference number: 484231
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