Do I need life insurance?

You’ve had your offer accepted on the house you want to buy; and you’ve just had confirmation of your mortgage approval. Congratulations! Now all that’s left to do is sort out the insurances you need before moving into your new home, but do you need life insurance? With so many different insurance policies available, it’s not always clear which are a legal requirement to get a mortgage, and which aren’t.

What insurance do you need for a mortgage?

The only insurance you need as a legal requirement when getting a mortgage is buildings insurance. Buildings insurance covers your home against any damage that may need to be repaired. This type of insurance only applies to the structural aspects of your home; i.e. the walls, roof, floors, fixtures and fittings etc.—not the actual contents of it.

However, there are lots of other types of insurance that can benefit you and your family’s future. Mortgage insurance covers the cost of your mortgage if you become unwell or unable to pay the bills; and similar to life insurance, it offers a level of security against the worst. Contents insurance is another good one to consider when buying a home, protecting your belongings within the house from theft or natural damage.

Do I need to take out life insurance to get a mortgage?

Contrary to popular belief, you do not need to take out life insurance to get a mortgage.

One of the main reasons why people take out life insurance is to ensure that their families can carry on paying the mortgage, in the unfortunate event of your parting. The consequences of not being able to pay your mortgage could end in your family being forced to sell their home and move out.

Why do I need life insurance?

We understand that insurance isn’t the nicest thing to talk about; but we want you to be able to stay in your home no matter what might happen in the future. Unfortunately, we don’t all have a crystal ball so that we can predict the path that our lives will take. Certain things can take us by surprise, including:

• Unemployment
• Illness
• Accidents
• Death

Depending on your situation, there could be various outcomes that leave either yourself, your family, or both, under a certain amount of pressure that could’ve been avoided with a little forward-thinking and help of our protection advisers.

Taking out the right insurance policies can not only make sure that you stay in your home; but also ensures that you maintain your current lifestyle. Meaning that you and your family don’t have to go without things such as family holidays, Christmas and birthday presents. You also don’t have to worry about paying the bills every month should your insurance cover it in any unforeseen event.

Could you pay your mortgage without your salary?

We know you can’t live your life by saying what-if but think about the worst case scenario; if you’re the breadwinner in your household, do you know who would pay your mortgage off if you were unable to work for 6+ months, lose your job, or even worse? We understand that these aren’t nice things to think about; but it’s important to consider all eventualities when it comes to protecting yourself and your family. Having life insurance could protect you from any unnecessary worry.

How can we help keep you and your family protected?

Our protection specialists can look at any provisions you currently have in place to see if these are sufficient enough for what you need.

Perhaps you have employment benefits, such as sick pay or death in service which could help make things a bit more comfortable for you. However, you may find that this isn’t enough to sustain your current standard of living, or even less than this. If this is the case, we can look at what solutions there are that could be a better fit for you or your family; the best part is, these provisions don’t even need to be expensive!

Enjoy yourself today, knowing that tomorrow and every other day is looked after

At The Residential Mortgage Hub, we understand that no two people are the same. Our team of experts take the time to make sure that we find a solution that is right for you and your circumstances.