Protecting your mortgage.......
At Lime FM we feel that it is vital to make sure our clients and their families are protected from the unforseen events that can happen to any of us, and at any time and when talking about the largest investment in most peoples lives we urge our clients to protect themselves adequately to give themselves peace of mind that a death or serious illness could bring.
When we talk about mortgages we will always want to talk to our clients about the appropriate protection for this and will advise and reccomend to them the most appropriate protection package tiered to each of our clients individually.
Insurance is a question of what ifs? We urge our clients to think sensibly about what may happen in the future, to protect you and your family from any further discomfort if the worst were to happen.
So who should have insurance?
This is down to each individual client but we advise all of our customers to consider the protection of themselves against the possible life events that none of us expect.
We take the time to explain each and every product and their benefits and will tier the correct product to our clients individual needs not simply sell a product that will be of no benefit.
Click the Links on the right hand side for more information on any of these or quick call us now and one of our professional advisors will contact you shortly.
Life or Term Insurance
This insurance is to cover each client individually or jointly if they were to lose their life or as many providers do cover within this for terminal illness, i.e. if an insured life were to be diagnosed with a terminal illness the insurance cover would pay out.It is offered in two main ways:
Level Term Assurance ;- The benefit amount remains the same for the duration of the policy for example if an insured party were to claim in either year 1 or year 20 of the policy it would still pay out the insured sum. (This cover is mainly taken with an interest only style mortgage repayment)
Decreasing Term Assurance - The benefit amount decreases in line with the repayment of a capital and interest mortgage repayment (subject to your mortgage repayments being made). The idea of this cover is to reduce in line with the mortgage amount covering the insured party until the policy and mortgage amount.
Critical Ilness Insurance
This insurance covers the client against being diagnosed with what the insurers deem to be a critical illness. Each provider offers different critical illness definitions but they have now all been given standard definitions that they must offer with every critical illness policy.Critical illness works in pays its benefit in a tax free cash lump sum on the diagnosis of one of the defined illnesses. This can be decresing or level cover as with life insurance and often our clients will look to combine these two covers.
Please contact us using ""QUICK CALL" for more information on Critical Illness
Accident, Sickness & Unemployment cover
With accident, sickness & unemployment policies, you pay for an amount of monthly cover - usually between £0 and £1,500 - and if you lose your job or can't work, you get that amount of money each month to spend how you like. Policies usually pay out for up to a year or until you return to work, whichever happens first. It also usually pays a cash lump sum if you die or become disabled during the policy.Accident Sickness & Unemployment Pros and Cons
Pros
- Worth taking out if you've taken out your mortgage or re-mortgage after October 1995, as you are unlikely to get any help from the state with your mortgage payments if you get into trouble.
- A good idea if you think making your mortgage payments would be difficult if you were made redundant or too ill to work and you don't have any other protection to cover household bills.
- May be useful to think about if you don't have a job which has sick pay or your self-employed
Cons
- It covers only a specific debt - your mortgage, so you won't have extra money to provide for other things like food, clothing etc.
- Can be expensive
- These types of cover pays for a limited time period, typically 1 to 2 years or until you return to work.
Accident, Sickness & Unemployment insurance (ASU) Explained
Accident, Sickness & Unemployment insurance (ASU), can also be referred to as mortgage payment protection and will provide you with an income to meet your outgoings if you are off work sick, have an accident or are made redundant. It pays out a monthly benefit to cover your mortgage and other related costs.
You may choose the amount of benefit you would like to receive, although there are some limits on the maximum amount. The premium will be a percentage of the amount of monthly benefit you would like to receive. Benefits are usually payable for a maximum of 12 months.
Some policies will also allow you to choose whether you want to receive benefits for accident & sickness only, unemployment only or all three. Most policies will also have a 'deferment period' This is the time you have to wait to start receiving benefits from the ASU policy after you have become ill, had an accident or become unemployed. Again, this can vary from having no exclusion period to 30, 60 or 90 days. In some instances, this can be even longer.
Alternatively some ASU policies have a waiting period after which time the claim is paid in full. With a 30 day waiting period, on the 31st day of unemployment or disability the claim is back dated to day 1 & paid in full.
Contact us now for more information on all of these products.....
info@limefm.co.uk or 01702 460466.