During the current cost-of-living crisis, committing to another expense might be the last thing on your mind. However, this is exactly the time to consider how you would manage financially should the worst happen, if you don’t already have sufficient protection in place.
Your mortgage is probably your largest monthly outgoing, so it makes sense for this to be protected as a minimum, yet many households remain unprotected. If you are lucky enough to have savings, they will only last for a limited time, and help from relatives could be less forthcoming, given they are likely to be dealing with increased costs themselves. You insure your cars and your pets, so why not yourself and your family?
How would you cope? It’s not nice to think about and often difficult to talk about, but just ask yourself the following questions:
- If I or anyone in the household were made redundant, would I be able to pay my mortgage and other bills/outgoings?
- If I or anyone in the household were unable to work due to an accident or sickness, or was diagnosed with a critical illness, would I be able to pay my mortgage and other bills/outgoings?
- If I or my partner were to die prematurely, would the survivor be able to pay our mortgage and bills/outgoings?
- If something happened to my home, or anything in it, could I afford the repairs, replacements or even potential temporary accommodation?
- If I think I could manage to pay in any of these events, how long could I realistically manage for? How much do I have in savings, and could my family really help me out, even if they wanted to?
It’s unlikely that the answers to all of the above questions would be YES!
If you have existing cover but think it may no longer be suitable, or are struggling to afford the premiums, please don’t cancel if at all possible, leaving yourself unprotected. We can review your current needs to see if any changes can be made or if we can find a cheaper policy. Worst case scenario, some cover is always better than none!
Bear in mind that premiums will be cheaper the younger you are. Don’t hold off thinking you’re too young for anything to happen to you as unfortunately this isn’t always the case. Premiums may be less than you think (sometimes as low as a few coffees a month), and many providers offer benefits to their policy holders throughout the term of the policy, from access to physiotherapists and mental health specialists, to discounts on cinema tickets and smart watches. It really is worth having a discussion on how we can best help you.
Don’t forget that having sufficient Buildings Insurance may be a condition of your mortgage, and your solicitor may ask to see evidence of this before allowing you to complete. You may find cheaper cover on comparison websites, but often, this is because the policy provides less cover or there are exclusions. We will be happy to check quotes you may have obtained against our own, so you are fully informed before making a decision.
If you would like to discuss Life Cover, Critical Illness Cover, Income Protection, Buildings/Contents or Landlords Insurance, don’t hesitate to get in touch and our expert advisers will be happy to help. Call 0800 915 3243 or email info@millrosefinancial.co.uk
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
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