Life is unexpected and we never know what’s about to happen. Events like illness, injury or unexpected health issues can make a huge impact on your family’s financial situation. And when you have a mortgage, the pressure can be even more drastic as missing monthly repayments can put your credit score at risk.
That’s where mortgage income protection comes into the picture. This is a specific kind of mortgage plan, designed to protect your income if you are unable to work due to illness or injury.
In the UK, eligible employees are provided with the welfare system providing statutory sick pay (SSP) — but this support is limited. As per the current rules of SSP, the eligible individual can claim a fixed weekly amount for a maximum of 28 weeks, regardless of normal income. If you have a mortgage and a family to feed, this support can seem far from sufficient. It’s important to protect your mortgage with a tailored plan because:
The average UK mortgage repayment is over £800 per month.
Around 1 in 5 people are unable to work for at least a year due to illness.
Long-term sickness can often extend beyond the permitted sick pay periods.
Remember that a period of ill health can quickly strain household finances. So, it becomes important to have an additional protection plan.
The monthly premiums of an income protection insurance plan may vary based on various factors, some of which include:
Age of applicant
Health and medical history
Smoking status
Occupation and risk profile
Monthly income being protected
The length of the deferral period
For the lowest premiums, it is highly suggested that you arrange cover when you’re younger and healthier.
A mortgage income protection plan is suitable for many individuals, including:
Homeowners with a Mortgage
Self-Employed and Business Owners
Families with Dependants
Those Without Adequate Savings
The key to enjoying maximum benefits is choosing the right kind of plan. At AWS Private Finance, we can help compare different plans from multiple UK insurers so you can make the right choice as per your needs.
Contact AWS Private Finance today to discuss your options and how we can help with your case.
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YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOAN SECURED UPON IT.
