There may be many good things in your life but it might be relatively safe to predict that you don’t consider insurance to be one of them.
Yet that may be regrettable because in some situations, something such as mortgage insurance might just be critical in helping you and your family to maintain your lifestyle.
That might arise if you suddenly found yourself in the position of being unable to pay your mortgage for reasons of:
Unfortunately, it’s probably fair to say that the wide range of mortgage protection insurance available doesn’t exactly help people to gain a fast insight into what the options are and which may be suitable for them.
So, to try and help, let’s consider some of the more commonly encountered varieties of cover:
- insurance that would continue to pay your monthly mortgage payments for a specified short period of time (typically 12-24 months depending on the provider), should you be sick or made involuntarily redundant etc.
This form of cover is sometimes called MPPI or Mortgage Payment Protection Insurance;
- cover that would pay off your mortgage in its entirety, should you or your spouse die – this is called mortgage life insurance or variations thereof (some of these policies may pay off your mortgage in the event of a critical long-term illness);
- general life insurance – there are a variety of policies available that might be linked specifically to a mortgage or that would perhaps generate a lump-sum for your beneficiaries, that they could use, if they so chose, to pay off your mortgage.
A linked concept is that of PHI (Private Health Insurance). This cover may allow you to have private and rapid medical treatment in situations where, for example, there were significant delays through the NHS – though that’s not the only reason someone may choose PHI.
That may link to your mortgage and quality of life because it just might mean that you get treated and back to income generation faster, thereby reducing the total strain on your finances.
Many of these types of insurance are now available online (through sites such as that of Drewberry Insurance
and it might be worthwhile taking stock of your financial exposures and what you perceive the risks to be.
Sometimes we’re all reminded of just how vulnerable our lifestyles are, whether through a personal experience or something we see with friends or family. One of the things that our families or we might need in such situations is freedom from financial worries.
That freedom might allow people to concentrate on keeping their lives going and to cope with things such as grief or changed life circumstances etc.
Insurance, though it might never be a glamorous subject for most, might be something that is worth paying a little more attention to.