You can’t control what happens, but you can be prepared.
It’s a difficult concept to think about the possibility of losing a partner or being told you have a serious illness. We believe that having the right conversations gives you the advice you need to ensure your home and family are protected. We work with a leading panel of insurers to offer some of the most competitive products out there.
This is cover that pays out on death. Some plans pay upon earlier confirmation of a terminal illness where the prognosis is death within 12 or 18 months depending on the policy. It can pay out as a lump sum, or as income for the remainder of the policy term.
Cover can last for a set term called Term Assurance, or can last throughout life, called Whole of Life.
The amount of cover can remain the same or increase / decrease annually. Level term assurance stays the same throughout. Decreasing cover is sometimes used to cover a reducing debt, such as a repayment mortgage and usually assumes a given interest rate. Provided your mortgage rates don’t exceed that rate, then the cover should reduce at around the same rate as the mortgage. The amount you pay is called the premium. It can either be guaranteed not to change, or it can be reviewable.
Reviewable cover normally changes based on the claims experience of the life assurance company.
The plan will cease at the end of the term. If premiums are not maintained, then cover will lapse.
This provides income where you are ill or injured and as a result your earned income stops. If Houseperson’s cover is included, then it will pay out upon illness or injury, irrespective of any income stopping.
Having income protection removes the stress of replacing lost earnings at a difficult time. You can use the proceeds to continue paying your mortgage; bills and family lifestyle costs – allowing you to focus on getting better.
Cover lasts for either a set term in whole years, or to a given age (typically your state retirement age). The amount you pay is called the premium. It can either be guaranteed not to change, or it can be reviewable. Reviewable cover normally changes based on the claims experience of the life assurance company.
The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
Insurance that pays out when a defined medical event occurs. For example, following a heart attack, stroke, cancer or some other specifically defined critical illness. It’s up to you what you use the policy payment for; medical bills, home renovations or even repaying your mortgage are just some examples.
Cover is for a set term, which may be equal to a mortgage term, for when children have grown up, until retirement or another life stage milestone. It may be worth considering having one policy for a set term to cover the mortgage, and another that will provide money to help provide for your different lifestyle if a serious illness happens.
Most people choose a lump sum to be paid out. There is the option of receiving it as set income over the term remaining, which is often a lower cost option.
If the policy has no investment element then it will have no cash in value at any time and will cease at the end of the term. If premium are not maintained, then cover will lapse. The policy may not cover all the definitions of a critical illness. For definitions please refer to the key features and policy document.
Buildings Insurance
This covers the actual structure of your home. It will always include the main building and can be extended to cover sheds, the garage, fences, swimming pool etc. Buildings insurance is only a consideration if you own the property. If you own a flat you will still be responsible for buildings cover, usually as determined by the ground rent and buildings agreement, which usually means that the liability to cover is apportioned between properties. This is sometimes covered under the Service Charge.
If you are a homeowner, having buildings insurance in place would normally have been a condition of your mortgage. A good buildings insurance policy should cover you for fire, flood, subsidence, storms, lightning, theft or vandalism, escape of water and oil, and damage caused by falling trees, branches or other objects.
Contents Insurance
This covers practically everything within your home including furniture, household goods, food and drink, TVs, computers, clothing and valuables, usually up to a stated limit. This type of insurance is not compulsory and no mortgage lender can insist you take out contents cover so you will need to source this yourself.
This policy pays out if any of your home contents are lost or damaged, following a burglary or a fire, an explosion, leaks or vandalism, and also for accidental damage.
Many insurers cover the cost of replacing locks if your keys are stolen. Most policies may be extended to cover accidental damage or loss of valuable items you frequently take out of your home, such as jewellery, cameras and sports equipment. This is known as an ‘all risks extension’.
Many people underestimate the value of their home contents. To get a clear idea of the sum to be insured, go through every room – including the loft, garage, cellar and shed – and write down what it would cost to replace every item at today’s prices.
Novus Financial Solutions is a trading style of ASW Associates Ltd which is an appointed representative of Quilter Mortgage Planning Limited which is authorised and regulated by the Financial Conduct Authority.