Life Insurance and Home Insurance whether you’re renewing a policy or shopping for protection ahead of a new property purchase.
South Manchester Mortgages always recommends a fully protected mortgage.
South Manchester Mortgages is an Independent Mortgage Broker, this means that we are not only mortgage specialists, but we can also access the whole market for your insurance protection needs.
Many banks and building societies and estate agents are “tied” to one insurer, and therefore cannot compete with an independent specialist like ourselves on cost or benefits as they only offer one product. This is a complex area and, in our view, is sometimes a more important decision than the mortgage. Whereas a mortgage may only last two or three years, the right protection could last the whole term!
We therefore always have a free face to face consultation with you and one of our experienced advisors to discuss your individual requirements to help us with our personal recommendations.
We have listed below a brief description of some of the many types of protection currently available, which may help narrow down your choices. Please feel free to call us and we will arrange an appointment with you at home, in your office or at our offices.
What is critical illness cover?
Critical illness insurance will pay out if you get one of a number of specific medical conditions or injuries listed in the policy. But be aware that not all conditions are covered and policy will also state how serious the condition must be.
Most policies will also consider permanent disabilities as a result of injury or illness. A critical illness policy only pays out once and then the policy ends. Some policies will make a smaller payment for less severe conditions, or if one of your children has one of the specified conditions.
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What isn’t covered?
Some serious illnesses might not be covered, for example, some cancers and conditions not listed in the policy. You probably won’t be covered for health problems you knew you had before you took out the insurance, and this type of insurance does not pay out if you die.
What’s covered and what’s not will be set out in the policy details so make sure you’re fully aware of them and that they cover your needs. We guide you through all the considerations to find the right policy to meet your needs.
Do you need critical illness cover?
State benefits might not be enough to replace your income if something goes wrong. If you’re eligible, welfare benefits range from around £70 a week to just over £100 a week, depending on your circumstances (i.e. whether or not you have children, a certain level of savings, or if your partner works).
Critical illness cover could be considered if:
- You don’t have savings to tide you over if become seriously ill or disabled
- You don’t have an employee benefits package to cover a longer time off work due to sickness
Who doesn’t need it?
You might not need it if:
You have enough savings to fall back on and can adequately cover expenses such as bills, loans, medical costs or a mortgage
You have a partner who can cover living costs and any shared commitments, like a mortgage
You might already have some cover included in other products or work benefits.
How much does it cost?
Your monthly payments will depend on a number of factors, including:
- Age
- Whether you smoke or have previously smoked
- Health (your current health, your weight, your family medical history)
- Job (some occupations carry a higher risk than others and may mean you have to pay more each month)
- The amount of cover you take out
Other types of protection include:
Decreasing Term Assurance
This product provides a lump sum on death and/or critical illness during the term, if eligible. Cover decreases each year, in line with the balance of a repayment (capital and Interest) mortgage.
Level Term Assurance
As above, but cover remains level throughout the term.
Mortgage payment protection insurance (MPPI / ASU)
Usually provides short term protection against sickness and / or redundancy. If you are eligible, cover can be from Day 1 or 30 / 60 days and lasts 12 – 24 months in either event.
Permanent Health Insurance
Provides a long term, usually Tax Free income, if you are unable to work due to accident or sickness, if eligible. This usually will be for at least the mortgage term, or preferably to retirement. This tends to be set up to take over from when your employer’s sick pay would normally end e.g. 13 or 26 weeks.
Private Health Insurance
To provide cover to allow for any private medical treatment and may also provide an income while in an NHS hospital. Subject to limits and eligibility.
Commercial Mortgage Protection
Protect your Business:
Key person insurance – also known as key man insurance
- Director / shareholder protection
- Partnership protection
- Business loan protection
- Sole trader protection
Whether you are a sole trader, partnership or limited company business protection is a vital safety net, and can take many forms, life and / or critical illness cover, income protection, key person or ‘key man’ insurance, and for limited companies, why not let the tax man pay for some of your life cover?
- Keep your business trading
- You can replace key individuals
- Protect corporate debt
- Buy out a shareholder if they become critically ill or buy their share from their estate if they die.
- Critical protection is vital to allow businesses to recover quickly
Mortgage, Life & Home Insurance Specialists
Helping you have the home you want… protecting what matters to you most
Call 07791 533122 or email: info@southmanchestermortgages.com