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Protection is the term used to describe the different insurance policies that you can take out, depending on your current needs and circumstances, to make sure that your finances are covered should the worst happen. In the mortgage world, protection policies are in place to make sure your monthly mortgage payments can be paid if you were unable to pay them due to sickness, accidents, and death. There are lots of protection policies out there that you should be aware of. But don’t worry, we’re here to talk you through the different types of protection and whether you need protection to get a mortgage.

Types of protection

To make sure you’re protected against the unexpected, here are the different insurance policies you can take out:

  • Life insurance – provides financial support for your loved ones in the event of your death and is usually paid out as a lump sum. This can also be linked to your mortgage policy, so that it can cover the mortgage in your absence.
  • Family income benefit – this is a type of life insurance that is paid out monthly after your death to your dependants. For example, it can provide you with a monthly income after your passing until your dependants are aged 25.
  • Critical illness cover – covers your financial needs should you find yourself unable to work due to a critical illness. Each lender has its own criteria and types of conditions covered in their policy.
  • Income protection – this will cover up to 65% of gross earnings covered should you be unable to work due to illness or injury.
  • Buildings and contents insurance – covers the cost of repairs for any damages caused by any unexpected events (such as fires or flooding) to the property and contents inside.

Do I need protection to get a mortgage?

As a minimum, the only type of protection you need to get a mortgage is buildings insurance. Buildings insurance is a lender requirement. Without buildings insurance, your mortgage application won’t be approved. And whilst it isn’t a legal requirement to get any of the other above mentioned protection policies, it’s worth thinking about because you want to make sure that you’re protected should the worst happen.

Ask yourself these questions: would I be able to pay my mortgage if I was off sick? Would my loved ones be financially supported if something were to happen to me?

If the answer is no, then it’s worth seeking advice on the policies available to you.

Speak to a protection adviser

Throughout your life, you’ll go through big milestones like getting a new job or deciding to start and a family. And with these milestones your circumstances and needs will change, and so too will your protection requirements. That’s why it’s always good to review and update your protection policies regularly. If you want to review your current protection policies or learn more about what protection policies are best suited to your needs, our expert protection advisers can help.

We will not charge you a fee for our services relating to insurance.

We will receive commission from the product provider. The commission will be calculated as a proportion of the premiums paid for the insurance product.

You will receive a quotation which will tell you about the fees and charges relating to any particular insurance policy that we recommend.

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