Remember, by taking a Mortgage in the UK, you accept long-term financial commitment. Therefore, you should insure your life, health and income in the event of unforeseen events.
Life Assurance, Life Cover – This is an insurance policy which will pay out a lump sum in the event of the death of the insured person.
Critical Illness Cover – This is a policy which will pay out a lump sum when diagnosed with certain illnesses. Critical Illness Cover is often used as protection cover when you have a significant financial commitment i.e. mortgage.
Income Protection Insurance this kind of insurance protection provides cover when unable to work due to health. Income Protection Insurance is an insurance policy, paying benefits to policyholders who are incapacitated and unable to work due to illness or accident.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. You should think carefully before securing other debts against your home.