Protection & Cover

This is about making sure you can afford to continue living in your home in the event of illness or death

Why Protection is Important

Throughout life there are events that can seriously affect us, our family and our financial security. These are difficult issues to think about. Imagine the impact on you and your family if anyone in your household dies or becomes seriously ill. We all hope that this won’t happen, but we need to plan for the possibility.

You can protect yourself and your family financially, should something unexpected happen.

This investment can make the difference between keeping or losing your home, and maintaining your family’s lifestyle.

Many homeowners view their property as their most important asset. In fact, your continued ability to earn is your greatest asset.

Most homeowners insure their property against fire or their car against an accident but fail to protect themselves against a loss of income following an illness or death.

At Brunel Mortgages we will discuss your individual needs and advise you about the different options available, without any obligation to proceed. You always retain the right to choose and decide, but having current information available will help you make the right decision.

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Income protection

Many of us would struggle to keep on top of our essential outgoings, such as mortgage and rent, if we lost an income due to illness or an accident. Income protection is a long-term insurance policy that makes sure you get a regular income until you retire or can return to work.

If you’re unable to work due to illness or an accident, you might assume that your employer will continue to provide some level of income. In reality, employees are often moved onto Statutory Sick Pay within six months.

Very few employers support their staff for more than a year if they’re absent from work due to illness. Depending on your level of savings, the loss of income can soon leave you unable to pay essential household bills, such as the mortgage, rent and utilities.

It can be particularly difficult if you’re self-employed and have no sick pay.

Who doesn’t need income protection insurance?

You might not need income protection insurance if:

  • you could manage on sick pay. For example, you have an employee benefits package that gives you an income for 12 months or more.
  • you could manage on government benefits.
  • you have enough savings to support yourself.
  • you could take early retirement.
  • your partner or family would support you.

Critical Illness Cover

This type of cover is often taken out to help pay off a mortgage in the event of suffering a critical illness. It can also be used to provide a lump sum to help with any capital requirement.

Critical illness insurance will pay out if you suffer from the specific medical conditions or injuries listed in the policy. It only pays out once, after which the policy ends.

The conditions and illnesses covered can vary significantly between different insurers. The most comprehensive policies cover in excess of 50 conditions, while others are more limited.

Examples of critical illnesses that might be covered include:

  • stroke
  • heart attack
  • certain types and stages of cancer
  • conditions such as multiple sclerosis (MS)
  • major organ transplant
  • Parkinson’s disease
  • Alzheimer’s disease
  • traumatic head injury

Most policies will also consider permanent disabilities as a result of injury or illness.

Speak to one of our protection advisers at Brunel Mortgages to find out how this type of cover could benefit you and your family.

Life Insurance

Life insurance pays out either a lump sum or regular payments on your death.

You decide how it’s paid out and whether it will cover specific payments such as a mortgage or rent or if it’s to leave your family with an inheritance.

Decreasing Term Assurance

This is the most common type of policy used to pay off a repayment mortgage in the event of death.

The level of cover will reduce over the term of the mortgage to match the outstanding balance. This is the cheapest option.

This type of policy can also be used to provide a regular income to help maintain the household expenditure while you have dependent children.

Level Term Assurance

This policy can be used to pay off a repayment or interest only mortgage as the level of cover remains constant throughout the term of the policy. There may be a surplus lump sum if the mortgage balance has reduced when a claim is made.

This policy can also be used to provide your family with a lump sum which may help cover essential expenditure and maintain your family’s lifestyle.

Speak to one of our protection advisers at Brunel Mortgages to find out how this type of cover could benefit you and your family.

Home insurance protects your home by making sure you’re covered, should something unexpected happen. Building insurance is often required if you want a mortgage.

Without cover, you risk having to pay for replacements or repairs if something happens to your home or belongings. For example, if they’re damaged in a fire or a flood or if your possessions are stolen.

Benefits of home insurance

Household insurance protects you financially if anything happens to your property or possessions. They need to be covered by your policy.

Insurance for a mortgage

Buildings insurance is often a requirement when you take out a mortgage. Your property is the mortgage lender’s security on the loan, so the lender will want to protect their financial interest by making sure the property is insured against damage. This may be due to fire, storms or subsidence.

At Brunel Mortgages we can compare cover from different providers and help you choose the right policy.

Alternative accommodation

Most home insurance policies will provide you and your family with somewhere to stay if it’s unsafe to stay in your home due to fire, flood or if your house became uninhabitable.

Accidental damage cover

It’s easy to spill wine on a new carpet or bang a nail through a pipe by mistake. If your home insurance policy includes accidental damage cover, it could pay for replacements or to repair the damage. You can usually add accidental damage cover if it isn’t already included.

New for old

Most possessions will be worth less now than when you bought them. But if something happened to them, you’d want to buy new versions. New for old cover allows exactly that. You get a new replacement if something old is lost or damaged. Not all policies include this type of cover, so make sure you check.

Home emergency cover

If you have a burst pipe or a door that’s been broken in a burglary, you’ll want it fixed fast. Home emergency cover provides you with access to a tradesperson appointed by the insurance company, often via a 24-hour helpline. Home emergency cover is included in some insurance policies and can often be added on.

Make sure you have the right cover in place for your new home. Your solicitor will want confirmation that insurance has been arranged. We can provide a Statement of Intent which can be given to your solicitor to show that you have cover arranged subject to a start date.