Response Mortgages

INSURANCE AND PROTECTION 

Personal Protection

We hope you never have a need to claim on these products but if the worst does happen having the right cover in place will lesson the strain for you and your family. We can ensure that all factors are considered when putting your insurance in place so that you get the most comprehensive cover and best deal.

Life Cover

Life assurance allows you to make sure your family is protected in the event of your death, during the policy term. You choose the amount of cover you need and the length of time you want to be insured for. Your premiums will never change (unless you change the amount of cover held under the policy or alter the plan), allowing you to budget with confidence.
WHY YOU NEED IT, AND WHAT THE STATE WILL PROVIDE
The loss of a spouse or parent can leave dependants with additional issues to cope with other than the emotional. If you are inadequately insured, your dependants may be left with a dramatically reduced household income, which could affect their quality of life. Potentially there may be reduced opportunities for children such as the ability to pay for a university education or difficulties in maintaining mortgage payments on a reduced income. In the event of your death, a lending institution will not write off your debt. Rather, they will continue to pursue the debt through your dependants and could, ultimately, foreclose on the loan meaning the loss of the family home.

What will the State provide?
The main benefits the State may provide are the Widowed Parent’s Allowance and Child Benefit. Depending on whether the widow(er) qualifies for Income Support, the State may or may not help with paying the mortgage interest. The method for calculating which benefits an individual may qualify for is extremely complicated. More information is available at the Department of Work and Pensions website.

Critical Illness

A Critical Illness plan is designed to pay out a lump sum on the diagnosis of certain specified illnesses. It is often ‘bolted on’ to a life assurance policy as an additional benefit but can also be written as a stand alone plan.
WHO IS IT FOR?
Who is it for?
This type of plan is designed for those individuals or families who want a lump sum if they are diagnosed with a serious illness. This lump sum could be used to repay a loan, mortgage, or perhaps pay for time off work. The lump sum could even be used to pay for any necessary alterations to your home. The quality of cover and the illnesses covered can vary significantly between different providers. As independent financial advisors we can help you find the plan that best meets your requirements as well as giving you the most benefit.

Redundancy Cover

In today’s uncertain financial climate, many of us are under risk of redundancy or unemployment through no fault of our own. Recent financial circumstances have led to more and more companies struggling to stay afloat with many having to make cut backs and frequently that means reducing the level of employees.

We cannot predict our job security now or in the future, so choosing to protect your income in the event of redundancy is a real consideration.

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What if your employer was to go bust? Could you find yourself in the position of still being able to pay any ongoing financial commitments such as your mortgage, car insurance, finance, any personal loans, utility bills; nevermind the day to day living costs such as grocery shopping, heating, etc. With a redundancy cover/ a redundancy insurance policy in place you can continue working in the knowledge that should you find yourself unemployed through no fault of your own then you will be paid a tax free monthly income to help with your finances / living costs, etc. Payment Protection Insurance is optional. For impartial information about insurance, please visit the website at Money Advice Service (by clicking the link you are now leaving the Response Mortgages website, and we are not responsible for the content of external sites).

Household Insurance

Home insurance is exactly what it sounds like it is there to protect your home. Buildings and contents insurance will provide you with peace of mind and protect you from potential financial hardship should you need to replace or repair your home, its contents and your belongings. It will protect against damage or loss and if you choose provide you with legal and emergency assistance. It is possible to get the two insurances in two separate policies although you will find that most providers offer them as a combined cover.
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Why do you need household insurance?
As our homes are the most important asset that we are ever going to own, it is imperative that adequate home insurance is taken out for your property. We have access to a variety of providers and will compare the benefits and levels of cover to get the best value for you.
Statistics show that 1 in 4 people in the UK will get burgled during their lives but people still choose to ignore this and don’t get any protection whatsoever. Other unforeseen circumstances such as floods and fire may also wreak havoc among your possessions and by not taking out effective cover you are taking the risk of losing out financially.

Home insurance is split into two types, buildings and contents. Buildings insurance is a mandatory condition when taking out a mortgage and lenders will insist that this insurance is in place before completion of the loan. It protects your home against disaster that is beyond your control such as flood or major fire as well as other events like burst pipes or subsidence.
Contents insurance is not a mandatory requirement when taking out a mortgage, but is just as important. It provides insurance against damage to or loss of contents and personal possessions whilst in the home. You can also build in options that protects those belongings whilst away from the home. If you own your own home it is common to have both buildings and contents insurance alongside each other, however if you are renting then protecting your contents only is just as important.

Income Protection

An Income Protection plan is designed to pay out a regular income in the event you are unable to work due to an accident or illness. These types of plans continue to pay out an income as long as you are unable to return to work up until the end date of the policy (typically your normal retirement age).
This type of plan is quite often seen as the foundation of any financial planning as it is likely that other plans will have to be given up if you do not have sufficient income coming into the household.
WHO IS IT FOR?
This type of plan is designed for anyone who is working (employed or self employed). It’s worth pointing out that even if your employer provides sick pay, it is unlikely to last for longer than twelve months and so ongoing protection is essential. Plans can be adapted to fit in with any existing protection you might have. As Independent Mortgage and Protection Advisors we can help you find the plan that best meets your requirements