For a time there it seemed that obtaining a mortgage was about as difficult as getting the latest debit card from the local department store and with this in mind people approached this phenomenon with great gusto. But what about insuring that mortgage?
Now that the credit crunch has taken hold, the world of finance has been shaken and interest rates are fluctuating in a very erratic way. Mortgages, once seen as an easy touch, are rising, in some cases up to 100%, and unforeseen circumstances in a person's life could easily lead to the inability to meet the payments. And all because the idea of insurance was not given consideration.
Now is the best time to take control. Remember, insurance is not about the risk of something happening, it is about taking out cover to help you out after something damaging happens. A lot of people take issue with taking out life insurance because they think to themselves "I'm perfectly healthy, so why do I need insurance?" The truth is, this is the best time to take out life insurance because you are in peak condition and the premiums will be lower. The other truth is, although you may be a picture of health right now, it is impossible to predict what may happen and unfortunately even healthy people get ill. The important thing is to be prepared for that possibility and protect yourself against it.
So what things insurance wise should you bee looking at? Well first you should make sure your mortgage, if you have one, is protected. If it is a repayment mortgage you will need a mortgage protection plan. If it is an interest only mortgage you will need a level term plan. In addition look at the costs of adding the extremely valuable benefit of critical illness cover, this type of benefit will pay of the mortgage in the event you suffer a serious condition such as a heart attack or cancer, regardless of the outcome. So even if you get better the mortgage will still be paid off in full, a valuable benefit indeed.
Payment protection is another factor which should also be taken into consideration. This will protect your actual mortgage payments against the eventuality of you being off sick or made redundant. Unfortunately redundancy has become more of a possibility for more of us as companies are having to make severe job cuts in order to survive. Payment protection policies tend to pay out for between 12 and 24 months, so if you have to go off sick or are made redundant, this can make the difference between keeping and losing your home.
Now what about your loved ones? If the worst did happen they would have the mortgage covered but could they get by with the absence of your regular income every week or month? If you think not then you might want to consider some sort of life cover.
The best type of plan for this situation would be family income benefit. This plan will be able to pay out a monthly or annual benefit, similar to that of your income now, and it is the perfect income replacement should you die. So you would take it for a benefit similar to that of yours or your partners salary and if the worst was to happen that would be the payment you would receive each year keeping your family at the level they had become accustomed to.
So to summarise now is the time to be reviewing all your financial affairs not least anything to do with mortgage and loans. You need to put a far greater emphasis on protection in these hard times as it is these times that hurt the most should the unthinkable actually happen. It is always best to seek some sort of professional advice for this process, such as an independent financial advisor as these people are qualified to consider what might happen and protect against it. - 15275
Now that the credit crunch has taken hold, the world of finance has been shaken and interest rates are fluctuating in a very erratic way. Mortgages, once seen as an easy touch, are rising, in some cases up to 100%, and unforeseen circumstances in a person's life could easily lead to the inability to meet the payments. And all because the idea of insurance was not given consideration.
Now is the best time to take control. Remember, insurance is not about the risk of something happening, it is about taking out cover to help you out after something damaging happens. A lot of people take issue with taking out life insurance because they think to themselves "I'm perfectly healthy, so why do I need insurance?" The truth is, this is the best time to take out life insurance because you are in peak condition and the premiums will be lower. The other truth is, although you may be a picture of health right now, it is impossible to predict what may happen and unfortunately even healthy people get ill. The important thing is to be prepared for that possibility and protect yourself against it.
So what things insurance wise should you bee looking at? Well first you should make sure your mortgage, if you have one, is protected. If it is a repayment mortgage you will need a mortgage protection plan. If it is an interest only mortgage you will need a level term plan. In addition look at the costs of adding the extremely valuable benefit of critical illness cover, this type of benefit will pay of the mortgage in the event you suffer a serious condition such as a heart attack or cancer, regardless of the outcome. So even if you get better the mortgage will still be paid off in full, a valuable benefit indeed.
Payment protection is another factor which should also be taken into consideration. This will protect your actual mortgage payments against the eventuality of you being off sick or made redundant. Unfortunately redundancy has become more of a possibility for more of us as companies are having to make severe job cuts in order to survive. Payment protection policies tend to pay out for between 12 and 24 months, so if you have to go off sick or are made redundant, this can make the difference between keeping and losing your home.
Now what about your loved ones? If the worst did happen they would have the mortgage covered but could they get by with the absence of your regular income every week or month? If you think not then you might want to consider some sort of life cover.
The best type of plan for this situation would be family income benefit. This plan will be able to pay out a monthly or annual benefit, similar to that of your income now, and it is the perfect income replacement should you die. So you would take it for a benefit similar to that of yours or your partners salary and if the worst was to happen that would be the payment you would receive each year keeping your family at the level they had become accustomed to.
So to summarise now is the time to be reviewing all your financial affairs not least anything to do with mortgage and loans. You need to put a far greater emphasis on protection in these hard times as it is these times that hurt the most should the unthinkable actually happen. It is always best to seek some sort of professional advice for this process, such as an independent financial advisor as these people are qualified to consider what might happen and protect against it. - 15275
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