Protection Archives | The Mortgage Merchant

Life cover and your mortgage – hand in hand
One of the financial responsibilities of homeownership is to protect
yourself and your family. Life insurance and your mortgage are
inseparable companions.
- One of the financial responsibilities of homeownership is to protect yourself and your family. Life insurance and your mortgage are inseparable companions.
- Knowing that your family will have a roof over their heads brings invaluable peace of mind, ensuring that your home remains a place of security and comfort.
- Premiums can be surprisingly affordable, especially when you’re younger and healthier. Securing a policy early on means you can get a lower rate and possibly make cost savings over the life of your loan.
- Many lenders require borrowers to have life insurance as part of the mortgage agreement to ensure their investment is protected.
- There is a choice of options, term; whole life; and critical illness cover. Tailoring your policy to your specific needs and budget is a smart financial move.
Taking out life cover is an investment in your family’s security and a responsible
financial decision that every homeowner should consider. So, talk to us.

As with all insurance policies, conditions and exclusions will apply
Your home may be repossessed if you do not keep up repayments on
your mortgage
Jake

October 31, 2023

Market update

hand in hand, home buying, life cover, mortgage, Protection
Protect your home insurance

Your home is likely to be the most valuable thing you own; without
insurance you may struggle to afford repairs if any damage should be
incurred.

When you take out home insurance, it is with the best intentions and should
result in immense peace of mind. However, a recent study (1) has highlighted that
75% of homeowners in the UK have inadvertently invalidated their insurance
policy, by potentially making their homes vulnerable.

For example, by leaving doors unlocked or windows open (especially during the
summer months), homeowners run the risk of having a claim rejected by their
insurer. Almost half (48%) of survey respondents have admitted to doing this.

So, be careful, don’t run the risk of invalidating your policy.

As with all insurance policies, conditions and exclusions will apply.

(1) Confused.com, 2023

Jake

October 10, 2023

Market update

confused.com, Home insurance, Protection
Why you shouldn’t cancel your protection

Research shows that a rising number of people are cancelling their protection insurance policies as the cost-of-living crisis continues to bite.

According to research by Consumer Intelligence (1) , 8.2% of people have cancelled
or reduced an insurance policy and 6.8% said they would consider cutting back
in the future.

Not the answer

It is understandable that households struggling with basic expenses would look
to cut costs wherever possible. However, cutting back on protection insurance
could make an already difficult situation much worse.

It won’t happen to me

There is a tendency to think that bad things only happen to other people, but the
fact is that you never know what is around the corner. Protecting yourself
financially is one of the best ways to minimise your vulnerability to financial
shocks.

Sadly, being too sick to work is not as rare as you might think. According to the
Office for National Statistics (ONS) (2) , the number of working-age people who
can’t work due to long-term sickness is now 2.5 million.

You’re not alone

If you’re looking to cut costs and don’t know where to start, we’re here to help
by identifying areas where you may be able to economise – without sacrificing
your vital protection cover.

As with all insurance policies, conditions and exclusions will apply

(1) Consumer Intelligence, 2023
(2) ONS, 2023

Jake

October 6, 2023

Market update

Cancelling Protection, critical illness, Expenses, Income Protection, life insurance, ONS, Protection
Payouts and policies rise in 2022

Insurers supported people experiencing bereavement, illness, or injury
to the tune of £6.85bn in 2022, according to latest figures from the
Association of British Insurers (ABI).

Upwards trend

This total includes payouts from group and individual protection policies.
Individual policies paid out £4.64bn on life insurance, income protection and
critical illness claims, while group policies, which provide protection products
through an employer, paid out £2.21bn.

Protection when it’s needed

In total, some 287,000 individual claims were paid, with the average payout
from these policies increasing for the third year in a row to £15,448, a 9%
boost.

Over 15,900 people claimed against individual income protection policies in
2022, another 9% increase from the previous year. The total value of these
claims also rose by 22%. For the second consecutive year, the main cause of
individual income protection claims (34%) concerned musculoskeletal issues.

Acceptance rates stay high

The number of new individual claims paid has consistently been around 98%
since 2017. More than half of declined claims resulted from customers who had
not told their insurer key details about themselves or their circumstances.

As with all insurance policies, conditions and exclusions will apply

Jake

August 17, 2023

Market update

2022, ABI, acceptance rates stay high, critical illness, Income Protection, life insurance, Payouts, policies, Protection, protection when its needed, rise, upwards trend

Life cover and your mortgage – hand in hand

Protect your home insurance

Why you shouldn’t cancel your protection

Research shows that a rising number of people are cancelling their protection insurance policies as the cost-of-living crisis continues to bite.

Not the answer

It won’t happen to me

You’re not alone

Payouts and policies rise in 2022