Your mortgage is one of the biggest financial commitments you are ever likely to make, so protecting your debt through Life Insurance and/or Critical Illness Cover can give you peace of mind.

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Life Insurance, also known as Life Cover, is an insurance policy that pays a lump sum to your beneficiaries when you die. Life Insurance is usually taken out at the start of your mortgage term, so that if you die unexpectedly, the mortgage can still be paid and the people you leave behind are financially protected and able to keep a roof over their heads. When you take out Life Insurance, at Downton Mortgages and Financial Services we will work closely with you to ensure that your family have peace of mind when it comes to your mortgage debt, if the worst happens.

Our most popular protection product is Term Life Insurance which can cover you for the term of your mortgage or until your 70th birthday. Should you pass away during the term of the policy, the policy pays off the remaining amount of your mortgage debt, so your family doesn’t have to worry about any future repayments.

Various changes in your life can impact how well you are protected, so it is advisable to review your insurance cover regularly, especially if it has been in place for some time. The term of your policy should align to your current situation and/or future plans to ensure that by the end of the policy, the need for a lump sum payment if you are diagnosed with a terminal illness or pass away is no longer there. If you will potentially still have a liability after the term ends, then careful consideration needs to be given to ensure adequate protection is in place to cover these eventualities. All of this can be discussed with you in an insurance review meeting that we offer as part of our service.

Another way of protecting your family is to take out Critical Illness Cover. None of us know what’s around the corner when it comes to our health, but we can make sure we’re prepared financially. This kind of protection helps if you become critically ill during the policy term. It pays out a tax-free lump sum and you have the freedom to use this money in whichever way meets your needs – this could be to clear or reduce your mortgage debt, health-related charges, monthly living expenses, or lost income while you are unable to work.

Depending on which policy suits you best, most allow you take more control of your health and wellbeing right away as many insurers include added benefits like discount gym memberships, nutritional support and counselling services.

Like Term Life Insurance, you can be covered until your 75th birthday. The main three conditions that are covered are cancer, heart attack and stroke. However, many other conditions are covered but can vary from one insurer to the other. If you are diagnosed with one of the covered conditions during the policy term and you meet the requirements set out by the insurer, you will receive a payment from your policy. 

Whether you already have a new home or are looking to purchase a new home, you should be reviewing and ensuring that you protect your family from an overwhelming debt on the home if something happened to you.  If you have the need for Life Cover to remove your mortgage debt, and/or you feel that Critical Illness Cover would offer some additional support should you become unwell, then we are here to offer you the very best personalised advice and find the policy that meets the needs of you and your family best.