Threshold Mortgage Advice

Financial protection and planning – need to knows and where to go

Unforeseen circumstances can drastically shake up anyone’s financial situation, affecting their ability to repay a mortgage, pay the bills or leave inheritance for loved ones.

Many people are aware that they need protection but with so many variations, finding the right type at the right price can be a little off-putting, especially if you’re unsure about where to begin your search.

So here’s where you can start. We’ve listed 6 of the most common forms of protection taken out in the UK with information about what they’re for and how you can find the best level of cover.

Mortgage protection

This type of cover is designed to pay out in the event that you pass away during the term of your mortgage, leaving the person(s) who inherits your property without the burden of having to pay the mortgage.

Depending on your circumstances, it may be possible to find mortgage protection that pays out a lump sum on diagnosis of a critical illness. This can be a great relief for homeowners who suddenly fall ill and become unable to work.

Family protection

Family protection insurance can be paid out either as a lump sum or as an income over a specified period of time.

The payout that your beneficiaries receive can be spent as they see fit, whether that be for school fees, to pay the mortgage or for living costs.

The flexibility that many family protection products offer is often a big factor for policyholders who don’t want to leave their loved ones without.

Income protection

Very few employees offer an employee benefits package which gives you an income for 12 months or more and unfortunately, each year, a million people in the UK find themselves unable to work because of injury or a serious illness.

Income protection can pay out a replacement income which covers mortgage and living costs until you can either start working again or until retirement.

If you were to make a claim on your income protection policy, generally, you can expect to receive payments after your sick pay ends.

Home insurance

Our homes are our castles so when accidental damage, leaks or break ins occur, it can be reassuring to know you have the backup of home insurance.

Policies can vary with individual contents insurance providing cover for items inside your home such as furniture, electricals and expensive ornaments and buildings insurance generally covering the financial cost of repairing damage to the physical structure of a property .

Financial planning

Getting financial advice can help you plan for the future, whether that be for a wedding, a child or new home. An outsider’s perspective highlights the areas where you may be overspending and opportunities for investment if suitable.

Our financial planners take a personal approach, taking the time to get to know you, asking questions about your goals and future plans. This helps them to provide accurate advice tailored for your situation.

Will writing

Often the most overlooked form of protection, a will can ensure that your personal belongings and assets are left to the right people after you die.

You might think you don’t have enough assets or money to require a need for a will but consider but not having one in place could be distressing for your loved ones who may be left financially or sentimentally unable to cope.

Will writing is not part of the Openwork offering and is offered in our own right. Openwork Limited accept no responsibility for this aspect of our business. Will writing is not regulated by the Financial Conduct Authority.

Golden rules for taking out protection

  • Compare a range of products from different providers to increase your chances of finding a competitive deal. Working with an insurance advisor can make this process a lot easier as they’ll know where to look as well as the likelihood of the provider approving your cover.
  • Be as accurate as possible when providing personal information about your age, health and circumstances. Inaccurate information can delay the process and could even result in you taking out the wrong level of cover. You don’t want to under or over-insure your belongings.
  • Read the terms and conditions, twice, and then twice again! This is a crucial point to make because the terms and conditions of your agreement could affect your ability to make a successful claim. If you feel unsure, it’s always best to double check. Our team can also help you with this, making you aware of any unfavourable conditions.

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