Family protection when it matters.
Protecting your family in Colchester, in case the worst happens to you, is not an easy thing to think about, but it’s an important aspect when taking out a mortgage, so that the repayments can be made in the unlikely event that something happens to you.
Our Colchester-based team understands the sensitive and difficult nature of discussing which income protection or life insurance policy is right for you. Which is why we discuss all your requirements discreetly and compassionately, and make the whole process as smooth and straightforward as possible.
Pure Protection Products
Life Insurance
Life insurance is a policy that provides a sum of money in the event of death during the term of a mortgage policy. This lump sum is paid tax-free and can be used by your dependants. This type of insurance is typically used to cover mortgage or other loan repayments and protects your family from the effects of repaying a debt.
Critical Illness Cover
A Critical Illness plan is designed to pay out a lump sum on the diagnosis of certain specified illnesses. This type of cover is designed for individuals or families who want a lump sum if they are diagnosed with a serious illness, to help cover the repayments of a mortgage, repay a loan, or cover time needed off work.
Income Protection
An Income Protection plan is designed to pay out a regular income in the event you are unable to work due to an accident or illness. These types of plans continue to pay out an income as long as you are unable to return to work, retirement, or death, although short-term income protection policies, which last for one or two years, are also available.
Family Income Benefit
Family Income Benefit is another type of life insurance policy which is set over a period of time known as the term. If you die within this period, the policy will pay out a regular tax-free income until the end of the term. For example, if you have a 20-year policy and die within 5 years, the policy will pay out the remaining 15 years.
The benefits of pure protection
The benefits of taking out pure protection policies, such as family income benefit or critical illness cover, alongside your mortgage, protects your family financially in case of an unfortunate event. This means your loved ones can continue living in the family home without the stress or worry of how they will cover monthly payments..
Benefits include:
- Protecting your home
- Financial security
- Flexibility
- Peace of mind
- Affordable options
Frequently Asked Questions
What is pure protection?
Pure protection refers to policies which cover life insurance, critical illness cover, income protection, and family income benefit. They are intended to be used for covering your mortgage repayments or providing financial safety net to your family if you pass away or are unable to work.
Do I need life insurance with my mortgage?
You aren’t legally required to take out a life insurance policy when you obtain a mortgage, but it is highly recommended. This is because your mortgage can still be repaid in case you pass away, and will avoid your family losing their home in case they can’t keep up with repayments.
What’s the difference between life insurance and income protection?
Life insurance pays out a lump sum to your family if you pass away during the policy term. Income protection pays you a regular income if you’re unable to work due to illness or injury. Many people choose to combine the two for a more comprehensive cover
How long should my protection policy last?
Most people choose a policy that runs for the same length of time as their mortgage, to ensure that repayments will always be covered. However, the length of time your protection policy should last depends entirely on you. If you’re unsure how long you should take a policy out for, our team is on hand to offer guidance and remove any confusion you may have.
Can I have more than one protection policy?
You can have more than one policy, whilst some people may choose to have one policy, others may decide to have two or more to have wider coverage. Ultimately, the number of policies you should take out depends on your financial situation and budget.