Taking out a mortgage is one of the most monumental moments in the lives of many. However, few people truly consider the magnitude of the long-term financial commitment that they are entering.
While picking up the keys to your new property is undoubtedly exciting, it is imperative that you consider how you would maintain your mortgage payments should life take an unexpected turn. Fortunately, this is where personal protection products can help provide you and your family financial security when most needed.
What are personal protection products?
Personal protection products are insurance policies specifically designed to safeguard your financial commitments. They offer peace of mind, knowing that should you fall ill, suffer an injury that keeps you off work for an extended period of time, or pass away, you and your family will be financially cared for.
Personal protection policies include:
- Life Insurance:
Life insurance typically pays out a lump sum to your dependants in the event of your death, ensuring that they can manage ongoing financial responsibilities such as mortgage payments.
- Critical Illness Cover:
Critical Illness Cover offers a payout if you are diagnosed with a serious illness. Long-term illness can be detrimental to finances, with few people able to honour financial commitments while on statutory sick pay. Critical Illness Cover helps remove this financial strain and allows you to focus on recovery.
- Income Protection
Income Protection provides regular income in an event whereby you are unable to work due to accident, illness or injury. Especially prudent for those who are self-employed or own a business, Income Protection ensures that household bills and mortgage repayments are paid while you are incapacitated.
Why is personal protection so important?
- Protecting your loved ones
One of the key reasons that personal protection is so important is that is ensures that your family is financially covered through any eventuality. No one wants to imagine leaving their family in a difficult financial situation, and life insurance offers the peace of mind of knowing that you family will have the means to stay in their home and maintain their quality of life should you die or become seriously unwell.
- Managing the unexpected
While no one wants to think about falling seriously ill or passing away, it’s an unfortunate truth that life is unpredictable. Critical illness or serious injury can occur at any time, impacting your ability to work and greatly affecting your income sources. Without a proper safety net in place, this can lead to financial hardship and trouble keeping up mortgage repayments. Personal protection products act as a buffer, helping you to maintain financial stability through challenging times.
- Securing your long-term plans
Personal protection is more than a way to provide peace of mind; it also safeguards your long-term financial goals. Whether you’re looking to ensure your child’s education, protect your retirement savings or wish to leave a legacy for your family, protection policies work to create a safety net that helps ensure your long-term plans are protected against unexpected life events.
Choosing the right protection for you
The right products for you and your family is entirely dependent on circumstances, including income, family situation and financial commitments. Cooper Associates Mortgage and Protection advisers offer bespoke, tailored advice to each client, ensuring a solution that aligns with your needs and requirements.
The cost of not being protected
Unlike, for example, car insurance, personal protection products are not a requirement when buying a home. As a result, many people nationwide decide to forego taking out protection in lieu of having more disposable income.
In the event of a serious car accident, few people are in a position to make an outright repayment for repairs, damages and compensation, and are thankful to have a strong car insurance policy in place to aid them financially. Without it, they may find themselves in a highly challenging financial situation.
Needless to say, your life and health are of far greater value than your car or other possessions. While it is harder to imagine the worst happening to a person than to a car, not having adequate protection could place you and your family in serious financial difficulties.
Sustained loss of income increases the likelihood of missed mortgage payments, which may lead to your home being repossessed. Missed payments can also have a serious negative impact on your credit report, which can be difficult and take many years to reconcile, leading to further financial and lifestyle struggles down the road.
Personal protection should not be considered just an additional expense, but rather an essential safeguard of your home and your family’s financial future.
Secure your peace of mind today
At Cooper Associates Mortgages, our Mortgage & Protection advisers understand the importance of protecting your most valuable assets. Our expert advisers can guide you through the options available, providing bespoke solutions based on your unique financial situation and ensuring that your protection expenses are manageable.
Contact us today for a fee-free, no-obligation consultation and take the first step to securing financial peace of mind.
