Compare mortgage protection insurance

Let's compare mortgage protection insurance

A home is likely be the biggest investment you will make in your life. You’ll work hard to be able to buy it, maintain it and pay off the mortgage each month so it’s really important that you have protection in place to make sure you can keep paying your mortgage and keep your home, should the unexpected happen. 

There’s the chance that you of your partner could be made redundant, or worse, one of you become unwell or injured in an accident so you can’t work for an extended period of time.  Without your monthly income you may not be able to pay your mortgage each month which could mean your home is repossessed. Even if you have savings set aside, these could quickly disappear without any money coming in.

We know it’s not a nice thing to think about, but it’s important to plan for, especially if you have monthly financial commitments, children to support and bills to pay.

So what policies are out there to help protect you and your family? We’ve put together the following answers to some questions often thought but rarely asked about Mortgage Protection.

What types of cover are there?

Accident and sickness only, unemployment only, and accident, sickness and unemployment combined. You can choose which is best for you, for example, your employer might provide a great sick pay package and so you might only be concerned with unemployment insurance. Alternatively, you might be self-employed and therefore can’t make yourself redundant, so may only want accident and sickness.

How much cover do I need?

You can choose a sum that represents your mortgage amount or your total bills.  Most insurers allow you to cover 50% of your gross pay (before tax is deducted) but some will cover up to as much as 65%.

How long do I need the policy to pay out for?

Again, you can choose between 6 months, 12 months and 24 months but 12 months is by far the most common.

How does this insurance impact on my sick pay?

It doesn’t.  The idea of this insurance is to take over when you’re sick pay ends. 

Some employers will provide you with your salary for a period of time when you’re ill, with some of the better packages paying you for up to 12 months.  Others have little or none, so you should check what your employer will pay you and for how long before taking out protection. The longer you receive the benefit, the longer the deferment period on your pay out can be which can help lower your premium you also need to consider some  policies may not pay out if you are still in receipt of your salary.

If you’re self-employed you have no benefits from an employer so Mortgage Protection may be something you consider.  

I’m not sure where to start, can I just talk to someone?

Our friendly advisers at Assured Futures understand that Mortgage Protection can be complicated and daunting, and they’re just at the end of the phone.  Call Freephone 0808 141 1332.

How much does it cost?

The cost will vary from person to person as insurance providers calculate these based on the level of cover you need, how much you need and for how long. Use our mortgage protection comparison service to compare prices and features to find the right cover for you.