Insurance tips—what should you consider?

4 Yu

Posted 23 months ago by Pope & Co. Mortgages

Having insurance when you need it can be a life saver especially when you have a home and family to protect. You've worked hard to buy your home so it's important to put a safety net in place to protect yourself. If you’re buying a house, and perhaps getting a mortgage, what should you consider?

Your individual circumstances will be a factor in what types of insurance you need at different times of your life. In terms of insurance risk we recommend you seek personalised advice suited to your needs. Read more about our free insurance review services.

The main areas we recommend you consider protecting with insurance are: your family, your income, and your assets.

If you are looking at taking on a mortgage, then typically mortgage repayment insurance, possibly coupled with income protection is crucial to reducing possible financial hardship, amongst other cover options.

Life cover in the event of death is also important to protect others, including children, against financial loss to the household and to cover funeral expenses.

We have summarised the main types of insurance below. Please contact your Pope & Co. adviser to discuss your particular needs.

Life Insurance

Life insurance is designed to protect your family or loved ones against financial loss to the household. If you are in a relationship, and one person were to die, your surviving partner wouldn’t have to pay a mortgage on their own. If you have children, you may want to leave a mortgage free house for them, cover your funeral expenses, cover a year or two worth of salary. and make life easier for those who will look after your children if you are not around. The level of cover needs to be assessed on a case by case basis.

Mortgage Repayment Insurance

This cover can help eliminate one of your largest monthly repayments from your income should you be unable to pay due to an unforeseen illness. Also, if at any time you are looking to increase your lending it is wise to review your insurance and ask yourself—how would I repay this loan if I did not have my income?

Mortgage repayment insurance is recommended to anyone who would suffer a loss of income in the event of an illness or injury affecting their ability to work (and has some benefits different to income protection insurance). Mortgage repayment insurance, unlike income protection insurance, does not reduce the amount payable if you are also receiving a payment from ACC. It can also be useful to protect a homemaker against the loss suffered and additional costs incurred if they aren’t able to fulfill their normal duties.

Income Protection Insurance

If anyone relies on your income it is worth having income protection insurance. Many people think that ACC will cover them but ACC only applies in cases of an accident (not illness). It’s worth getting advice to ensure you consider a comprehensive policy and understand all the terms and conditions. Cover is usually paid out when you’re off work through sickness or injury (after a minimum period of time).

Selecting personal insurance cover can be extremely complex but at Pope & Co. we make it easy by connecting you with our insurance specialist, who will discuss options to help you choose cover, talk through advice and quotes, and answer all your questions.

We can even help reduce the amount of forms to complete, as we know you're probably over those!

Contact us on 0800 000 517 to discuss how we can help you.

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