Types of Protection

 

When considering adding a protection plan, it can help to know some of the options that may be available to you. Below, we’ve listed some of the more common types of protection that might interest you:

Mortgage Payment Protection

Also known as Accident, Sickness & Unemployment (ASU) cover, this is one of the most common protection products, as a mortgage payment is often someone’s largest monthly financial commitment.

Any one of these three events could have a big impact on your quality of life. With Accident, Sickness and Unemployment cover, you can have peace of mind knowing that, in the event of redundancy or illness, your mortgage payments will be made and your home will be safe. Because most standard mortgages don’t include protection insurance, it's important to decide what kind of separate cover you need. Usually payments are made for up to a maximum of 12 months, but if you would like to be covered for longer, you may want to consider taking out income protection.

Critical Illness

When critical illness strikes, it can take a toll on you both personally and financially. Our Critical Illness Cover (CIC) is similar to Life Insurance, but it pays out on diagnoses of certain illnesses as opposed to only paying out on death. CIC could help you and your family cope without income while dealing with illness, and still have money to pay household bills and debts – which means one less stressor to deal with. CIC may also be able to help with private treatment, prescribed drugs not available through the NHS, changes to your home, and even paying off all or part of your mortgage.

Life Insurance

Life Insurance gives you the comfort of knowing that your loved ones will be provided for if you pass away. When linked to a mortgage, life insurance also ensures your mortgage will be repaid, so your dependents will be left with a mortgage-free roof over their heads. You can choose from level term and decreasing term. Level term insurance provides a set level of cover for the term you choose, while decreasing term insurance covers you for the term you choose, but the level of cover decreases through the term of this policy, usually to coincide with the reducing debt on your mortgage. There are many different ways to arrange life cover, and we can help you find the most appropriate plan available.

Buildings and Contents

Building insurance isn’t compulsory, but it may be part of a mortgage condition imposed by your lender. Buildings insurance will cover your home from such events as fire, flood and subsidence. It generally covers the bricks and mortar of your home along with any property fixtures and fittings, and contents insurance protects the possessions within your home. It can also protect your home from fires and floods, storm damage, subsidence, burst pipes and vandalism. If you don’t have coverage for such things, you may have to pay out thousands for repairs – or you may become homeless. We can help you determine an appropriate level of coverage, and help you find the most appropriate cover available for your circumstances.

For more information on these or other protection options that may be available to you, please reach out to one of our advisers.

Insurance like most products that you pay for (car insurance for example) must be priced accordingly for the risk it presents to the company providing it (the insurer).

Therefore, when considering the above insurances it is important to understand the factors that could add to the cost. This list is not exhaustive and should be used only as a guide. For more detailed and accurate information speak to your Carrington adviser:

  • Age: Generally the older you are at application for the above insurances the more expensive it can be as an event is more likely to happen. The exception to this (like those others noted below) is Buildings and Contents insurance where age is a benefit and could lower your premiums
  • Smoking Status: those who have used tobacco or nicotine products in the last 12 months including vaping will see their premiums priced higher for all the above insurances (with the exception of Buildings and Contents insurance). The reason for this is an event is more likely to happen if you are deemed a smoker
  • BMI: This scale which is determined by your weight and height will give an indication to a potential insurer as to how "healthy" you are. As a result of this you may find your premiums are higher if for example your BMI is high
  • Alcohol consumption: Much like smoker status, a high alcohol consumption can affect your premiums. As different insurers have different tolerances this may not always affect your premium
  • Medical history: Your health and that of your immediate family can mean the insurer looks to either increase your premium or perhaps exclude you from some conditions When speaking to an adviser about your insurance needs and applying for any insurance it is always important to declare everything as accurately as you can. Not doing this could invalidate a claim further down the line.

When speaking to an adviser about your insurance needs and applying for any insurance it is always important to declare everything as accurately as you can. Not doing this could invalidate a claim further down the line.

For insurance business we offer products from a choice of insurers.

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