Income & Mortgage Protection Insurance - Midlands - UK - Clover Financial

Which would you rather lose – your home or your mortgage payments? It is estimated that you are 20 times more likely to be off work for six months or more with an extended sickness or injury than you are to die before reaching retirement. However, although few people question the need for Life or Term Assurance to protect their dependants if they were to die, only one working person in ten has any specific long-term financial protection in place to protect them if they are unable to work because of sickness or accident.

Government figures show that about one in five people report having an illness or disability that limits their activities and about two million people each year claim for long-term sickness or disability benefits. Few people would find it easy to cope with the financial impact of a prolonged illness. So why is this area of financial planning so neglected? There is a mistaken belief that the state and employers will provide – yet most employers have a strict time limit on sickness pay and the state at best will only offer as little as £78.50 which is means tested and that is if you pass a strict medical test to qualify for it!

Fortunately there is something you can do to give you and your family peace of mind. The first option is: -

This offers a policy that will pay you a replacement income, which can kick in with anything from a 4 week to 52-week delay based on your current employers scheme. For only a small monthly outlay this will provide you with a monthly income to replace a significant part of your regular income, should you be too badly injured or ill to work for an extended period of time, and it will continue to pay out until you reach retirement if you are permanently disabled! So you can keep on paying not only your mortgage and associated outgoings but also afford to cover all your usual bills and protect your home and family!

A mortgage payment protection policy (MPPI) or and ASU (Accident, Sickness and Unemployment policy) is designed to protect the payments associated with the mortgage loan. Your mortgage is probably the largest debt you will ever have in your lifetime and most people will not have the extra resources to cover payments in the event of an interruption in their income for any reason such as unexpected illness with an employer who only pays statutory sick pay or redundancy.

The main difference between this policy and Permanent Health Insurance (PHI) is that a Mortgage Protection Payment Policy will only offer to cover the monthly payments for your mortgage and the associated costs like home insurance, and will typically only offer this cover for a maximum of usually a year and sometime two years at the most. It will have an excess period of between 30 days and 3 months from when it kicks in.

Our Advisors can help you choose the right policy for you and your family to make sure you have complete protection and peace of mind for you and your dependants. There are no fees for this service and there is no obligation so call today – what have you got to lose? Only your house perhaps if you do not have protection in place!