Bespoke Mortgage Advice
Protection: More important now than ever
Monday 15th August 2022
With the cost of living continuing to grow, homeowners across the world are looking at ways to reduce their monthly expenditure with advisers recommending scrapping subscriptions such as Netflix and cutting back on takeaways. However, whilst cutting down on certain day-to-day outgoings may help, it is crucial to ensure protection policies are maintained.
The importance of Protection policies is often not emphasised enough and can go amiss. It is also a hard conversation to be had, especially with all the focus being on the excitement of buying a new home.
The added features of Virtual GP appointments and Helplines that are often now built into Protection Policies are likely to carry even greater appeal in the post-pandemic era.
The current level of inflation is 9.4% and expected to reach 13% by December 2022, and with this the real value of wages is being eroded. Many people will struggle to replace lost, stolen or damaged items without the correct cover.
In the case of extreme weather events over recent years such as floods and more recently the warning of wildfires in the UK, the benefits of home and contents insurance are highlighted.
More and more households may find it difficult to keep up with utility bills, daily expenditure and mortgage repayments if they or the breadwinner loses their income as a result of poor health or worse if they were to die.
Borrowers must consider protection policies when taking out a mortgage and think about how their families may be affected if the breadwinner was unable to continue working due to ill health or worse if they were to pass away.
The importance of an Adviser
Advisers will play a crucial role in ensuring households understand the importance of Protection products as well as advising them on the right product to match their requirements. A specialist broker will be able to offer bespoke protection policies tailored to a myriad of outcomes; whether you are looking for, income protection, life cover or critical illness cover.
Protection Policies will provide that much needed added security in such uncertain times and cushioning from financial shocks down the line.