Getting the right insurance cocktail in place

5th January, 2022

Life Insurance, Serious/Critical Illness and Income Protection…
Does your family have the right insurance cocktail in place?

Getting the right insurance in place for your family’s financial needs is of paramount importance in modern society. For the majority of young families, putting in place the insurance we may need must fit within an affordable budget, so advice needs to be sought in order to create a balanced cocktail of protection and affordability.

“The best time to buy insurance is when you don’t need it. Once you need it, there is a good chance you can’t buy it anymore.”

Life Insurance is vital

Losing a parent turns a child’s life upside down. This isn’t a situation most of us like to think about, but if the worst happens life insurance will pay out a lump sum payment to your family which could make a huge difference to their future. It could for example repay a mortgage, pay for childcare allowing the remaining parent to work and support the family, or allow for luxuries like days out and holidays.

Serious/Critical Illness Cover

Serious or Critical Illness cover pays out a lump sum on diagnosis of a ‘serious’ illness. The list of illnesses covered varies from insurer to insurer, as does the pay out amount, so it is essential to seek advice. Some cheaper policies will only pay out for very specific illnesses, so getting one that offers good protection is important.

This type of insurance is more expensive than life insurance, as the risk of suffering such an illness is greater than death. However, the benefit from this insurance can help with private medical costs and loss of earnings.

“Our biggest asset as young people is our ability to earn an income.”

Income Protection

This is arguably the most important insurance. We don’t think twice about insuring our cars, phones, pets and possessions, yet without a main income your family’s lifestyle would suffer greatly.

In the UK, if you are unable to work, the state benefits currently offered by the government may only pay between £77 and £121 per week, and your individual circumstances will affect how much you receive. On this amount you would struggle to support a family, with rent or mortgage, food, household bills, clothing and childcare.

Income Protection insurance will pay out a benefit amount after a deferred period and will continue to pay this benefit if you are unable to work in your own job due to accident, sickness or disability until the end of the term. Whether you are employed or self-employed you are able to insure your income.

Quotes from an article by V. Kunderman

 

Get in touch and let us help you find the right insurance for your family’s financial needs.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

We normally charge a fee for mortgage advice. The amount will depend on your circumstances.
A typical fee would be £495 payable on offer. A fee of £100 is payable on application.

Network Mortgages is a trading style of Network Mortgages (South East) Limited which is an appointed representative of PRIMIS. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Network Mortgages (South East) Limited registered in England & Wales Reg No 10439208. The Financial Conduct Authority does not regulate most buy to let mortgages. Network Mortgages (South East) Ltd act as a credit broker not a lender for home and landlords insurance. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to customers based in the UK.

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