Do You Have the Right Protection Alongside Your Mortgage?
Taking on a mortgage is one of the biggest financial commitments most people will ever make. Protecting your ability to keep up those repayments, whatever life might bring, should be a priority from the very start. At Akers Pritchett, our protection advisors work alongside our mortgage team to ensure that your home and your income are properly covered.
What Does Protection Insurance Cover?
Protection insurance is an umbrella term for a range of policies designed to provide financial support for you and your family if something unexpected happens. The main types relevant to mortgage holders are life insurance, critical illness cover, and income protection.
Life insurance pays out a lump sum if you die during the policy term, which your family could use to repay the outstanding mortgage. Critical illness cover pays out if you are diagnosed with a specified serious condition, such as cancer, a heart attack, or a stroke, providing financial breathing room at an incredibly difficult time. Income protection replaces a proportion of your salary if you are unable to work due to illness or injury, covering you over a longer period rather than just a short-term absence.
Why Protection Matters When You Have a Mortgage
When you commit to a mortgage, you are agreeing to monthly repayments for potentially many years. Your income is what makes those repayments possible. If you were unable to work for a sustained period, or if you were to pass away unexpectedly, the financial consequences for your household could be significant.
Many people assume that savings or statutory sick pay would be enough to see them through. In practice, statutory sick pay is modest and can deplete quickly when set against a full mortgage payment, household bills, and everyday costs. Protection insurance exists to bridge exactly that gap and give you genuine peace of mind.
When Should You Review Your Cover?
Protection needs change as your life changes. Taking on a new mortgage, whether as a first-time buyer, a home mover, or when remortgaging, is one of the most important triggers for reviewing what cover you have in place. Starting a family, a change in income, or getting married are equally significant moments to reassess.
If your mortgage has increased, your existing life insurance may no longer be sufficient to repay the balance. If your earnings have grown, your income protection may need updating to reflect your current salary. Our advisors review your situation as a whole to make sure nothing is left uncovered.
How Akers Pritchett Can Help
Our team takes a straightforward approach to protection advice. We listen carefully to your circumstances, explain the options in plain English, and recommend cover that genuinely suits your needs and budget. We compare products from a range of insurers so you can be confident you are getting real value, not just a box-ticking exercise.
Whether you are buying your first home, moving, or remortgaging, contact us today to arrange a protection review alongside your mortgage advice.
Frequently Asked Questions
Is protection insurance compulsory when taking out a mortgage?
No, it is not a legal requirement, though some lenders do insist on buildings insurance as a condition of the mortgage offer. Life insurance and income protection are optional, but given the size of the financial commitment a mortgage represents, they are well worth considering. Our advisors will talk through the options most relevant to your situation without any obligation to take out a policy you do not want or need.
What is the difference between critical illness cover and income protection?
Critical illness cover pays a one-off lump sum if you are diagnosed with a specified serious condition listed within your policy. Income protection pays a regular income if you are unable to work due to illness or injury, covers a broader range of conditions, and is designed to support you over a longer period. The two products serve different purposes and some people choose to hold both. Our team will explain which combination makes the most sense for your circumstances.
Can I get income protection if I am self-employed?
Yes, and for self-employed people it is arguably more important, as there is no employer sick pay to fall back on. Policies can be structured around a deferred period, which is the length of time before cover begins paying out, allowing you to tailor the product to how long you could realistically manage without income. Speak to our advisors to explore what is available to you.
Your home may be repossessed if you do not keep up repayments on your mortgage.
As with all insurance policies, conditions and exclusions will apply.