INSURANCE AND PROTECTION
WHY YOU NEED IT, AND WHAT THE STATE WILL PROVIDE
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.
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.
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.
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).
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.
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.