Mortgage Protection

 

 

When you take out a mortgage, you may want to consider protecting what will most likely be the largest financial commitment you'll ever make. At Bright Sun we can help you with arranging for Life Insurance and Critical Illness Cover, details of both can be found below.

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Life Insurance

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A general term used to mean the same as Life Assurance. The difference is that in the insurance world they insure against something which might happen, but they assure against some they know will happen at some stage, i.e. death.

Life Insurance will provide you with the peace of mind that a lump sum amount will be paid out based on your outstanding mortgage debt, should you pass away during the term of your mortgage. As long as adequate cover is in place, this lump sum would clear off your outstanding balance and so no debt would be passed onto whoever is looking after estate, i.e. your next of kin.

 

Decreasing Term Insurance - the same as Mortgage Life Assurance. With repayment mortgages, the amount of debt outstanding will decrease as time goes on. This level of cover will follow in suit and the cover amount reduces as the mortgage is paid off.

 

Term Life Insurance / Level Term Insurance - the amount of cover remains the same throughout the term of the policy and does not reduce. This type of Life Assurance is suitable for Interest Only mortgages.

Increasing Life Insurance – this option allows you to protect your Life Insurance policy from the effects of inflation. Each year you will be offered the opportunity to increase your amount of cover in accordance to the retail price index, without the need for any further information.

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Critical Illness Cover

 

Critical Illness cover provides you with a lump sum pay out if you are diagnosed with, what the insurance company classifies as, a “Critical Illness”.

 

The Statistics

• 293,600 new cancer diagnoses made every year (based on the information from the www.cancerresearchuk.org website)

• More than 400 people in the UK suffer from a stroke daily

• More than 30,000 people per year require heart surgery

• Approximately 100,000 people in the UK are diagnosed with multiple sclerosis, a disease that effects the young adults (typically 20-30 year olds).

 

Critical illness cover can provide you with an important financial safety net, should you be diagnosed with a critical illness. It is designed to pay out a fixed cash amount.

 

The most common circumstances of critical illness pay outs including cancer, heart attack and stroke.

 

With the advances in medicine, not every type of cancer will have a severe impact on your lifestyle if discovered and treated early enough.

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Why not speak to us today to arrange Life and/or Critical Illness Cover for yourself; it may just be the best decision you ever make and if you already have a mortgage protection policy in place then also we can help you to find the cheaper rate policy.