Why should I protect my family?

Most people with a mortgage ensure they have sufficient life insurance, critical- illness cover and income protection to ensure their mortgage is paid. Although making sure you can repay the mortgage if your financial circumstances change is an important consideration, it is often not enough.

Once the debt is cleared, a sizeable chunk of monthly outgoings are removed but what about everything else that needs to be paid? Take gas, electricity and council tax (which all seem to be rising at above the rate of inflation), food, entertainment, holidays, school expenses, etc.

It is not beyond the realms of possibility that someone who has had the foresight to ensure their mortgage is repaid could still end up in enough financial difficulty and end up having to sell their home to make ends meet.

Thanks to modern multi-benefit menu protection products, it is easy to add in an extra safety net of protection on top of the decreasing cover for your mortgage. So you could add an extra £50,000 contingency for other living expenses. This would increase the premium marginally but provide you with much needed extra protection.

And even if £50,000 extra cover raised the premium above a level acceptable to you, it still need not be all or nothing. Anything beyond the mortgage amount is better. A £10,000 safety net just for other loans and credit card debt would be beneficial.

Your financial adviser will undertake a complex calculation in order to recommend the correct level of family protection.

Related Links

- Protecting your home
- Protetcting your income