Buying a property is the biggest purchase most people will ever make and mortgage repayments tend to be most homeowners’ largest monthly expense. Despite this, many don’t back up their investment with the right level of protection.
If you were to fall ill and be unable to work, would you be able to keep up with mortgage repayments? In the short term, many people could use savings or government support to get through a difficult couple of months, but for longer absences will this be enough to cover your mortgage payments?
That’s where Income Protection (IP) comes in. By paying a monthly premium, which could start from just a few pounds, IP is an effective solution to make sure you will never be in a position where you cannot afford your mortgage repayments due to illness or injury.
Despite the benefits, a worryingly low percentage of mortgage holders have adequate IP cover. Although around 37.5% of the UK population have a mortgage or loan for their property1, one report found that 81% of those with a mortgage have no IP in place2.
Income Protection might have fallen down priority list with higher everyday costs impacting but forgoing vital protection can be a costly mistake.
As with all insurance policies, conditions and exclusions will apply
1Money.co.uk, 2023, 2Royal London, 2023