Why do I need life insurance?

The offer has been accepted, your mortgage is in the pipelines and you can almost feel the cool steel of the key in your hand.

Stop! One last thing to think about, what insurances do you need in place before you move in? Which types of insurance policy and protection are legally required by your mortgage provider? Will you need to take out life insurance?

Do I need to take out life insurance to get a mortgage?

Contrary to popular belief, you do not legally have to take out life insurance to get a mortgage.

The main reason to consider this kind of protection is so that if the worst should happen and you’re no longer around to contribute to payments, your family will be able to remain in the house and keep up with the mortgage.

Why do you need life insurance?

Life insurance is a particularly emotive topic because of the need to consider worst case scenarios. It’s never nice to think that we may one day no longer be around. But knowing that your family will be able to stay in their home and not have to worry about the bills should give you peace of mind that you’ve done all you can to look after them.

And it’s not just about paying the mortgage after death. We cannot predict the future. We don’t know what will happen. Unemployment, illness or accidents can all make it difficult or impossible to work.

Insurance and protection help to ensure that in the event of such an event you can still cover the important things – food, energy, birthday presents for the children and even family holiday perhaps.

Hopefully you’ll never need to call on it, but if you ever do it will be the best decision you ever made.

How would you pay off your mortgage if you lost your salary?

Talk to one of our Protections Experts to find out about the options that are open to you.

What insurance do you actually need when you take out a mortgage?

There is only one type of insurance that you are legally required to arrange when you take out a mortgage. And that’s buildings insurance.

Buildings insurance covers your home against the cost of repairing any damage that may occur. It applies to the structural aspects of your home – that’s the walls, the roof, floors, fixtures and fittings etc. If you want to protect anything inside the house you will need a separate policy.

In the world of mortgage and protection there are tonnes of policy options, with different types of insurance suit different people depending on their situation.  Mortgage insurance will cover the cost of your mortgage if you become unwell or unable to pay the bills, for example. Just like life insurance, it offers a level of security against the unthinkable. Contents insurance is another one that we always recommend considering when you buy a home. This protects all of your belongings, in case they are stolen or damaged in some way.

Keeping you protected

At Lucra mortgages, our Protection Experts have years of experience within the industry. We will talk to you about your situation, your work, your level of risk and the level of cover you might need. Then we can offer advice about the types of policies you might wish to consider and the amount you could expect to pay for them.

By knowing that you’ve put plans in place to protect your family in the event of financial hardship, you’ll be able to sleep easier and enjoy every day.

Get in touch to talk to one of our experts about your requirements.