Do you still need a protection policy if you don’t have a mortgage?
People tend to look into protection policies when they’re purchasing their first home because in the event of something happening to them or their partner (if there is a joint mortgage), a payout can cover the remaining mortgage.
As time passes, families’ circumstances can change, mortgages get paid off and children grow up and become financially independent. Once the mortgage is paid off, people start to think about whether they still need their protection insurance policies.
So, do you need a protection policy once the mortgage has been paid off?
We believe the answer to be yes! A protection policy can be used for more than just paying off your mortgage and give you peace of mind for a number of different areas.
A protection insurance policy can be used to protect you, your partner and your family from unexpected unfortunate events.
Are you or your partner still working?
You may not have a mortgage to pay anymore however you will have other household bills and possible other loan agreements like a hire purchase or leasing finance on a personal car.
What would happen if you or your partner are unable to work? Could you still pay all your bills and/or keep up with your lifestyle? An income protection policy will pay a monthly amount if you’re unable to work due to illness or injury.
This type of protection policy is particularly popular with the self-employed as they wouldn’t receive employee benefits such as sick pay.
Being diagnosed with a critical illness can bring a plate full of changes and in some cases, it may result in needing to make home modifications.
Home modifications could include adding a stair lift, support rails, creating a wheelchair friendly bathroom, assisted beds, widening doorframes, adding an outdoor ramp or step rails.
You may even look into moving to a bungalow and a critical illness payout could be used as a deposit and/or pay towards the legal fees involved with moving house.
How would your partner and family cope?
If something was to happen to you, during a devastating time for your partner and family, a life insurance or critical illness policy can be a financial lifeline.
It can support your partner during a challenging time, they will be able to have an extended break from work without extra financial worries or they won’t need to return to work before they’re ready to do so.
Have you got enough to cover your funeral costs?
Funeral costs can quickly go into the thousands and it can bring you peace of mind knowing that your funeral costs are covered should the worst occur. In addition to decreasing the stress on your family as there is a pot of money left for them.
Are you a carer for your partner or children?
Whether you’re a full time or part time carer for your partner or children, this indispensable service would be costly to replace. Life Insurance and Critical Illness cover can give you peace of mind in the event that you’re unable to keep providing care, a payout can be used to pay for the care that they need and continue the lifestyle that they’re used to.
As you can see, there are a few more reasons and examples of how a protection policy can be used once a mortgage has been paid off. It’s providing more safety nets if something was to happen.
For a free review of your current protection policies or if you would like to discuss your requirements with our protection insurance specialist, don’t hesitate to get in touch with us. Call us on 01270 443510 or complete our contact us form and we’ll be in touch whenever is best for you.
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