Why do I need life insurance?
Sponsored feature | Rachel Sackel, Mortgage Advice Bureau
Staying in the present means planning for the future.
Picture this: You’ve just had your offer accepted on the house you want to buy, and you’ve just had approved confirmation of your mortgage.
What an amazing feeling! Now all that’s left to do is sort out the important things, like packing up your boxes, telling people your new address, and getting someone to help you move. But something’s missing here, isn’t it?
What about insurance and protection? While you need buildings insurance to get a mortgage, the buck does not stop there. It’s not compulsory, but having life insurance when you have significant financial commitments is a must.
Why do you need life insurance?
We understand these things aren’t always the easiest to talk about, but we want to make sure your family can stay in their home no matter what might come their way.
Unfortunately, we can’t always predict the path that our lives will take and some things can take us by surprise. We never know what’s around the corner and when you have a family to support, unexpected tragedy can strike deep.
Not only can life insurance help your family stay in their home, you can also help ensure they can maintain their current lifestyle, whether it’s going on the usual holidays or not having to worry about paying bills every month.
Let us consider a worst case scenario…
Could your family keep the home without your salary?
If you contribute the most to your family’s finances, and something were to happen to you that resulted in your death, would your family be able to continue to repay the mortgage?
If the answer is no, then you need life insurance. The money from your life insurance could go a long way to helping your family in the event of your death, and one of the main reasons people take out life insurance is to ensure that their families can carry on paying the mortgage should the worst happen.
What insurance do you need for a mortgage?
The only insurance you need as a legal requirement when getting a mortgage is buildings insurance.
Buildings insurance covers your home against any damage that may need to be repaired. This type of insurance only applies to the structural aspects of your home i.e. the walls, roof, floors, fixtures and fittings etc, - not the actual contents of it.
However, there are plenty of other types of insurance you can get that will benefit you and your family’s future. While you’re thinking about life insurance, it’s also worth considering:
- Critical illness cover
- Income protection
- Mortgage payment protection insurance.
How we can help protect you
We are perfectly placed to help you come up with an insurance plan that covers everything you may need. Not only can we recommend products that will suit your needs, but we can also assess your existing insurance policies to ensure they’re still fit for purpose.
We understand that no two people are the same and we want to work with you to ensure you have protection policies that suit your unique circumstances. It’s easier to enjoy the present when you’re not worrying about tomorrow.
For further advice or support, we’re always on hand to talk you through your options. Get in touch today - call 01223 300151 or visit our website at mortgageadvicebureau.com/cambridge.
Because we play by the book we want to tell you that your home may be repossessed if you do not keep up with repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances, but a typical fee is up to 1 per cent of the amount borrowed.