Why do I need Insurance?

The short answer is yes. Here’s the question you need to ask yourself:

• If you buy a house alone, you are the sole earner in your household. Without your income, how long could you afford to pay your mortgage?

Life insurance is less important for those buying a home on their own if you have no children or dependents, unless you want the property to be passed to someone mortgage free if you were to pass away. 

HOWEVER, Critical Illness insurance & Income protection insurance are VITAL for people buying a home on their own, to protect your ability to earn money & pay your mortgage costs. 

Importantly, if you’ve bought a property with your partner then you have to consider, without you, could your partner afford to pay the mortgage all on their own?

And for the parents reading this, what would it mean for your kids if somebody in the household suffered an income threatening condition? 

We understand that these questions are hard to answer & difficult to think about… but that’s why they’re so important to consider. 

If you’re buying a house with somebody else, you should undoubtedly be considering taking out life insurance, with a large focus also based on taking out a suitable critical illness & income protection policy. 

REMEMBER – for the parents reading this, Children’s critical illness cover can be included on your Critical Illness insurance policy, so you can also protect your kids, & get them the best care available if anything were to ever happen to them. 

Yes you do. Sick pay should work alongside your insurance policy. When arranging a mortgage with us, we’ll always ask you to detail what your sick pay, death in service & other workplace benefits look like so there are no gaps in your cover.

Even those with the best workplace benefits out there often still have large gaps that would leave them vulnerable without a personal policy being taken out alongside it. 

A common oversight is people often move jobs. If you move, you have no idea what your future employment benefits will look like. 

Your workplace sick pay works alongside your insurance. Your insurance can be set to a defined “Deferred period” 

Pre existing conditions are conditions that you have suffered from before applying for insurance. Often, you can still be insured if you have existing conditions but they must be disclosed to the insurer. 

The insurer could increase your monthly premium if the preexisting condition is likely to make you considered to be a higher risk person to insure, & they could also accept to cover you but exclude some/all of your pre existing conditions, depending on severity. 

The only mandatory insurance to have on completion of a mortgage is Buildings Insurance. This is to protect the mortgage lender as your house is the security for the loan they are giving you. 

All other insurance is not mandatory, but it is a responsible step to take a definitely a necessary thing to seriously consider, as not having it can result in financial difficulty in the future. 

Insurance can be cancelled at any time, although it is advised that you keep it for the duration of your mortgage. 

We’ll consider your age, health status, your budget & all of the details of your mortgage like: how much you’re borrowing, how long you’re borrowing it for. We’ll also consider your needs & preferences & your family circumstances to make sure that we’re covering not only what you need, but what’s most important to you.

When you apply, to make a decision on price & whether or not they will cover you, insurers will consider: your height & weight, your medical history, your smoking status, the amount of cover you are applying for, amongst other things.