- Life insurance
This straightforward policy will normally pay out a lump sum if one of the insured persons dies. The lump sum can be set to pay off the entire mortgage balance leaving the property mortgage free. The death of a loved one doesn't have to be compounded by the loss of the family home.
- Critical Illness Cover
Often combined with life insurance this cover will pay out a lump sum in the event that an insured person contracts one of a number of listed serious illnesses, for example some forms of cancer, stroke or a heart attack - specific definitions apply. It may also pay out in the event of total and permanent disability. This could ensure that lost income does not cause mortgage arrears and may also allow you to return to work at your own pace knowing that the mortgage is no longer a concern.
- Income Protection
This type of cover will pay out a regular monthly sum in the event that sickness or accident prevents you from working. Unlike Critical Illness cover it does not concentrate on only major illnesses. It will therefore pay out for almost any illness or disability which prevents you from working. The regular payments can cover your mortgage and associated bills can be arranged to continue until you return to work or your mortgage term ends. When you are fit to return to work again you may be able to go back without the stress of missed mortgage payments and arrears.