Insurance FAQs
When you buy a house you'll hear lots about the various insurances you need and that might mean you have questions. Here are some we hear most often and the answers you need to know.
What insurance do I need when buying a house?
It’s advisable to have Life Insurance and Buildings and Contents Insurance, at a minimum. This will ensure that your family are provided for should the worst happen and that you’ll be able to replace or repair anything round the house that may get damaged or destroyed.
However it’s also worth investing in Critical Illness Cover and Income Protection to ensure you’re protected against every eventuality.
What insurance is compulsory?
Most lenders make Buildings Insurance compulsory from exchange of contracts. Your lender should allow you to find your own insurer, although they can reject your choice. However, they can’t make you use their own insurance policy unless your mortgage package includes insurance.
Aren’t life insurance and critical illness cover the same?
Put simply, no. Life Insurance is designed to pay out a lump sum if the person covered dies. Whereas, Critical Illness Cover is designed to pay out a lump sum if you’re diagnosed with a pre-defined critical illness. Critical Illness Cover is normally used to pay off a mortgage balance, so you can have extensive periods off work to recover. It can also be used to cover travel expenses and private health care.
Why would I need income protection as well?
Income Protection is essentially self-funded sick pay. If you’re signed off work by your GP as a result of illness or injury then this pays you a regular monthly income until you can return to work. Income Protection is the most commonly claimed upon type of insurance because of the extensive list of reasons it can pay out.
If you have any questions or would like a protection plan tailored to you, please book a no obligation consultation with one of our Protection Specialist Advisors. As with all insurance policies & Personal Protection plans, conditions and exclusions may apply depending on your individual circumstances.