Insurance FAQs

Protection is a specific term used to describe a variety of insurance products that are designed to help protect you financially in the event of something unexpected - such as death or loss of income due to a critical illness.

The only insurance that is actually mandatory for a mortgage is buildings insurance. It is a lender requirement and ensures that should something happen to the property you are both covered. In terms of the protection you need for a mortgage, policies that can help include life insurance, income protection insurance, mortgage payment protection insurance, and critical illness cover. These protect you financially should the worst come to pass.

Buildings insurance specifically protects your home from damage caused by fire, storms, floods, and other natural disasters. Contents insurance protects the items and belongings inside your home, either from theft or damage. Buildings and contents insurance together are vital for peace of mind when it comes to your home.

Life insurance pays out a lump sum to your beneficiaries in the event of your death. This can be especially valuable in helping your family pay off a mortgage and other debts that may be left to them, should the worst happen.

Critical illness cover is a type of insurance that pays out a lump sum of money if you are diagnosed with one of the critical illnesses listed in your policy. These will vary based on your policy.

Income protection insurance pays out a monthly income if you are unable to work due to illness or injury.

Mortgage payment protection insurance pays for your mortgage payments if you are unable to work due to illness or injury. This differs from income protection as it covers a specific need.

There are a few factors to consider when choosing insurance and protection both for yourself and your mortgage. These considerations will include the types you need, the amount of coverage you need, and the overall cost of the policies. 

The cost of protection will vary depending on the types you choose, the coverage you need, your age, and your health. In general, however, protection is often a relatively affordable way of financially protecting yourself and your family.

Review your protection policy at least once a year to ensure that your policies are still meeting your needs. This is especially important if your circumstances have changed, such as if you have had a child, gotten married, moved home, or changed jobs.