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Tag : MPPI

Life Insurance

Peace of mind for the cost of a coffee

Peace of mind for the cost of a coffee

Many of us pick up a morning coffee on the way to work – it’s a little bit of luxury to start the day for just a couple of pounds. But did you know you could provide something even more satisfying for you and your loved ones for less than the cost of that coffee?

Peace of mind
Protection insurance (or, more specifically, life insurance, critical illness cover and income protection) should be considered essential – especially if you have a mortgage, or people who depend on your income.

A life insurance policy can provide much-needed funds if you’re no longer able to work through illness, injury, or worse. There are even some policies that will also cover you for unemployment. Cover provides peace of mind because you know you and your family will be financially supported if the unexpected happens – and cover might be cheaper than you think.

When it comes to a claim…
If you’ve declined the offer of protection insurance in the past because you don’t believe your insurer would pay out, think again. According to the Association of British Insurers (ABI), 97.3% of all protection insurance claims paid out in 2016, totalling £4.7bn. That’s around £13m a day paid to households hit by the emotional and financial distress and disruption that an unexpected accident, serious illness or death can cause.

Things change – and so should your cover
Even if you already have one or more of these types of plans in place, it’s still important to regularly review your cover levels. Personal circumstances can change and you should make sure your level of cover remains appropriate.

Choose security
Next time you’re in the queue wondering whether to go for a flat white or hazelnut mocha, why not consider a third option and choose long-term financial security for you and your loved ones. The satisfaction it can provide you is far greater than that from a coffee.

Based on latest data, a 35-year-old non-smoker looking for £250,000 decreasing life assurance and critical illness to cover a 25-year repayment mortgage, could pay a premium of £58.54 per month, equivalent to £1.88 per day based on a 31-day month.

Figures correct as at 7/8/2017

If you’d like more information on what sort of protection insurance would suit your circumstances, please get in touch.

Family Cycle

Protecting your mortgage repayments

Protecting your mortgage repayments

We think protection advice is imperative when you have a home or family you want to protect. So, talk to us about a mortgage and we’ll talk to you about life cover.

Buying a house could be one of the biggest financial commitments you’ll make: getting a deposit together
can wipe out your savings and paying your mortgage will take a chunk out of your income. So how would
your family continue to meet this commitment if you stopped earning?

When taking out a mortgage, it’s essential to consider how you would continue to cover your mortgage
payments if you fell ill or died unexpectedly. There are a number of ways you can do this:

Life Insurance
If you died suddenly, a Life Insurance policy would pay out a cash sum to your dependents. They could
use this to pay off their mortgage and keep the roof over their heads.

Mortgage Payment Protection Insurance (MPPI)
Also known as Accident Sickness and Unemployment (ASU) cover, MPPI covers your mortgage related
repayments if you can’t work because of redundancy, accident or ill-health. Benefits are usually paid for 12
months although some providers offer 24 months’ cover.

Critical Illness Insurance
Critical Illness Insurance pays out a lump sum if you’re diagnosed with a specified critical illness such
as cancer, stroke or heart attack. You can use the cash payout to clear your mortgage, pay for medical
treatment, take time to recuperate or anything else you choose.

Income Protection
Income Protection can replace part of your income if you’re unable to work for a long time due to illness
or disability. It will pay out until you return to work or the policy ends – whichever happens first. Income
Protection plans usually have a waiting period before the benefit becomes payable.

Choosing to protect yourself

When you take out a mortgage through us, we’ll ask if you want to take out protection as well. What’s more, we will analyse your lifestyle and any protection shortfall and recommend a protection plan that will help protect you and your family from the financial consequences of serious illness or death.