Life Cover
 
Focus on Mortgages Ltd offers a range of insurance policies from all of the UK’s leading insurance companies.

Mortgage Protection.

Mortgage Protection is a term assurance policy used to repay a capital repayment or interest only mortgage. Cover is arranged for a specified term to coincide with the repayment of your mortgage. This type of cover is normally the main priority when protecting a mortgage, as it will repay the loan and leave your dependants mortgage free.
This policy can also be combined with critical illness cover. Critical Illness will repay the loan, on diagnosis of a specified Critical Illness. Statistically, there is a far higher chance of suffering a critical illness in your mortgage term than there is in dying; therefore this is reflected in the premium. Critical Illness includes cancer, stroke, heart attack, etc.

Family Protection

So you have protected your mortgage in the event of death, and your dependants own their home. Will they be able to afford to live in it? The bills still need to be paid – council tax, electricity, gas, TV licence, telephone, house insurance, food, clothing, running a car, not mention what we used to consider luxuries – Sky TV, broadband, etc.
Family protection is again a term assurance which can be used to replace an income. This can either be with a one off lump sum or a monthly benefit. The term is normally written until your children are unlikely to be dependant, say when they are 21 and can support themselves. Don’t forget if a partner is not in employment, but looks after the children and home, would you be able to cope financially if you had to give up work or pay someone to do this?

Income Protection

Income Protection is to protect your income if you are unable to work due to accident, disability or sickness. The term is normally written until normal retirement date, and will pay out until then or until you are fit to return to work. The benefit will pay out after the selected deferred period. The deferred period is normally 4, 13, 26 or even 52 weeks. The deferred period you choose will depend on how long you will be able to support yourself without an income, or maybe you have employers sick pay for a period of time? For instance if you have 6 months full pay you would select a deferred period of 26 weeks. The longer the deferred period the lower the premium. Income Protection is often the forgotten insurance, but is one of the most important. For example you insure your home, your car, your holiday – but your income pays for all of this not to mention everything else.

These policies are not savings plans so if you cancel your policy, you will not get your money back.  Different insurance companies do not cover all serious illnesses.