Income Protection

 

The Facts

Will the Government help you if you are unable to work through an accident or sickness?

Don't count on it!  If you work more than 24 hours per week or have savings of more than £8,000 you will receive no assistance from the Government. You may be eligible for assistance, but only after the first nine months - and only the interest of your loan, a maxmimum of £100,000.

Self-Employed
If you were to suffer a sickness or have an accident that meant that you could not carry out your work for a few months, ask yourself 
"how would I cope".

  » Do you have a workforce that can carry on while you are incapacitated?
» Do you have savings that would see you through a few months, if so, for how long? then what?
» Would your partner's income be adequate in the short term?
» What about the long term?

Employed
What benefits does your employer give you if you are off sick?
If you are made redundant, what do you leave your company with?

If you are not sure, or do not know - then find out now.

How to protect yourself and your mortgage

Accident, Sickness and Unemployment cover (ASU)
Most of us are likely to suffer one of life's knocks at some time over the term of the mortgage, but there is an easy way to cushion any loss of income.
The word "unemployment" means unemployment through no fault of your own - redundancy.  This cover can be for accident and sickness only; redundancy only or accident, sickness and redundancy, and is relatively inexpensive - meaning one less worry during a stressful time.

It features:

 

» Back to day one cover after a 30 or 60 day qualification period
» Cover if you are self-employed, employed, company director or contract worker
» Benefits are paid for up to 12 months in the event of a claim
» The monthly cover limit is £1,500 (or a sum equal to 65% of your gross monthly income)
» Cover can be transferred from one mortgage lender to another
» Premiums are paid by monthly direct debit and the policy can effectively run for the whole term of the    mortgage
  
(irrespective of the lender)

Long term Accident and Sickness cover (Permanent Health Insurance - PHI)
This is designed to provide cover for a certain period of time, usually for the term of a mortgage or planned retirement age.  If you have to switch your job to one with a lower level of remuneration, then there may be proportional payments made.
Deferrred periods are 4, 13, 26, 52 and sometimes 104 weeks - the longer the deferred period, the less costly the monthly payments.
Benefits are usually expressed as a percentage of earnings less any other disability benefits payable. All benefit payments are tax-free.

Long-term incapacity can have a devastating effect for your family - you are advised not leave it to chance

Enquiries

 

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Your home may be repossessed if you do not keep up repayments on your mortgage
Pauline Johnson Mortgage Consultant is a Registered Individual at Gardner Independent,
an Appointed Representative of Personal Touch Financial Services Ltd
which is authorised and regulated by the Financial Services Authority
Gardner Independent offers full advice and recommendation from the Whole of Market

FSA Website