Protection insurance

Although insurance policies are not now specified as a condition of most modern mortgage contracts, there are various types of protection insurance that should be considered for both personal and family protection. We have agencies with a large number of the best quality insurers and will obtain quotations from all relevant. Some different types of policy that could be appropriate include:

Life Insurance
Normally pays out a lump sum if you die or are diagnosed with a terminal illness, can be based on level or decreasing (mortgage protection) benefit and is commonly arranged to repay the mortgage should the worst happen.

Critical Illness Cover
Normally pays out a lump sum if you are diagnosed with a specified critical illness – the most common claims are for heart attack, stroke or cancer; but cover also includes such things as permanent disability and loss of sight or hearing. This cover can be combined with life cover into a single policy.

Income Protection
Income protection (previously called ‘permanent health insurance’) is designed to provide an income in the event of being unable to work due to ill health or accident, commonly paid until specified retirement age.

Mortgage Payment Protection Insurance (Accident, Sickness and Unemployment)
Mortgage Payment Protection Insurance (MPPI) is similar to IP in that it will pay an income for people unable to work due to ill health or accident, but the benefit payment period is limited to 12-24 months. Unemployment benefit can also be included, thus it can also provide an income for the same period if you are made redundant