Once your mortgage is in place, you need to do all you can to keep the roof over your head. There are a number of different insurance products that can help you do so:
1.LIFE ASSURANCE
A lump sum of money that pays out if you die. (or your partner dies, if it is a joint policy)
This would usually be an amount to repay the mortgage. You can have decreasing cover if you have a repayment mortgage, or level cover for an interest only mortgage.
2.CRITICAL ILLNESS INSURANCE
A lump sum of money that pays out to you if you get diagnosed with one of a range of specified illnesses.
The money could be used to repay or reduce your mortgage or even pay for private health care.
This policy could again be arranged on a decreasing basis to cover a repayment mortgage, or level for an interest only mortgage.
3.ACCIDENT, SICKNESS AND UNEMPLOYMENT
This policy would pay out enough money to pay your mortgage and mortgage related insurance every month if you could not work due to an accident, if you were off sick, or if you wee made unemployed.
This policy could continue to pay out every month for up to 2 years if you could not return to work.
4.HOME INSURANCE
Insurance to protect your building and its contents.
You would automatically be covered for £300,000 of buildings cover and £40,000 of contents cover.