Mortgage Protection for Contractors

Mortgage Protection for Contractors: Safeguarding Your Home

A mortgage is likely to be the most significant financial commitment you’ll ever make when it comes to debt. That’s why ensuring you have comprehensive coverage in case of emergencies is crucial.

Understanding Mortgage Protection Insurance

Mortgage protection insurance is specifically designed to alleviate the finaof mortgage payments in situations such as accidents, sickness, unexpected loss of income, serious illness, or even death.

Let’s delve into the most common mortgage protection policies for contractors, allowing you to choose the ones that best suit your circumstances.

What is Mortgage Protection Life Insurance?

Mortgage protection life insurance is a type of personal protection policy that aim off your mortgage if you pass away.

There are two main types of mortgage protection life insurance: level term and decreasing term insurance.

Level Term Life Insurance

Level-term life insurance always pays out the same amount, regardless of your outding mortgage balance. This is particularly beneficial if you have an interest-only mortgage and need coverage for the entire balance or if you want extra funds for additional costside debt clearance.

Decreasing Term Life Insurance

Decreasing term life insurance is typically set up to align with your mortgage balance and decreases at a rate similar to your repaymefallsle. Since the sum assured decreases over time, decreasing-term policireducesnerally more affordable than level-term policies.

Can Critical Illness Cover be Included?

Yes, critical illness coverage can be added toCritical protection life insurance policy. It ensures that the remaining mortgage balance is paid off if you are diagnosed with an illness covered by the policy.

Serious or critical illnesses such as speciSeverees of heart attacks, cancers, and strokes can result in an extended period of incapacity, with some individuals never returning to work. Critical illness insurance provides peace of mind, allowing you to focus on recovery instead of worrying about mortgage repayments.

Take a look at our Critical Illness page foLookils on this type of coverage.

Accident & Sickness Insurance for Contractors

As a contractor, you may not be entitled to sick pay beyond basic Statutory Sick Pay (SSP), which is often insufficient to cover monthly mortgage payments. In such cases, accidents and sickness mortgage payment protection becomes vital.

This insurance policy provides a monthly payout directly to your bank account if you cannot work due to illness or injury. You can claim a portion or all of your mortgage repayments. However, the speed at which these payments are made depends on the chosen “deferment period.” The longer you can wait before the policy begins to pay out, the lower your monthly premiums will be.

Contact Us for Personalized Assistance

For more information on any of these mortgage protection policies or to receive a personalized quotation, please visit our contact page. Our customer service team will be delighted to assist you. Reach out via email, contact form, or call us today to speak with one of our experts at 0203 827 8560.