In recent more profitable times I have seen many clients take out mortgages without factoring in anything to protect them in the future. People were very much living in the moment, not considering the future, and simply taking each day as it came.



Those carefree times are well and truly over now, and we are all staring a very different and unstable future full in the face. It is now more than ever that we should all be considering what protection we have. With interest rates rising and falling, and some people looking at rises in their mortgage payments of as much as 100%, now more than ever you need protection against the possibility of something leaving you incapable of making those monthly payments.

So let us consider what insurance actually means. It is not the concept of insuring against something happening but insuring against the consequences of that occurrence. For example, people tend to think that with life insurance, because they are healthy they do not require it. But this is illogical because it is not now that they should be considering but further on down the line. No one is immortal and no matter how fit you are now no one knows what the future has in store. If something happens to you and you are not covered what will be the consequence of your decision. And bear in mind that if you are healthy now the premiums of a policy will be very reasonable.

So what things insurance wise should you bee looking at? Well first you should make sure your mortgage, if you have one, is protected. If it is a repayment mortgage you will need a mortgage protection plan. If it is an interest only mortgage you will need a level term plan. In addition look at the costs of adding the extremely valuable benefit of critical illness cover, this type of benefit will pay of the mortgage in the event you suffer a serious condition such as a heart attack or cancer, regardless of the outcome. So even if you get better the mortgage will still be paid off in full, a valuable benefit indeed.

You should also consider payment protection insurance. This type of insurance will insure you mortgage payment itself against the chance of you going off sick or being made redundant. In this day and age redundancy is becoming more of a possibility for more of us as companies downsize and tighten their belts. Most payment protection policies will pay out for at least 12 months in a claim and some will go to 24 months, which if you are unable to work due to sickness accident or unemployment can be the difference between keeping your home or not.

Finally in this article you should look at some sort of life cover to just cover your family. It is all well and good making sure the mortgage is paid off if you or your partner dies but it is little comfort if they are unable to pay the rest of the bills owing to the lack of income.

When you have a family to consider, the best sort of cover to take out is family income benefit. It pays out either a yearly or monthly sum, and provides a payout similar to the income you would have been earning were you still alive. The idea is to take out cover for an amount similar to that which you or your partner are earning so that you can guarantee that amount of money as an income for your family in years to come.

So now more than ever it is important to get all of your finances in order, particularly when it comes to your debts outstanding. Protecting your finances is essential, especially as it could be impossible to recover should the worst happen. With mortgages and interest rates rising, it is essential to be prepared for the worst. Of course, consult a professional financial advisor before you do anything, as their expertise could be indispensible when it comes to looking after you and yours.