If your partner or dependent relies on your income to pay the mortgage and would struggle to keep up with payments if you weren’t around, then you need to consider a mortgage life insurance policy. There are two main types of life insurance mortgage cover: decreasing term and level term. Decreasing term assurance will decrease in line with your mortgage so that it is paid off in the event of a claim. Level term assurance means that the sum assured is fixed at the start of the policy and remains the same throughout its duration. This type of cover pays out a lump sum if you were to pass away within a fixed time. It would be suitable if you wish to leave a lump sum for your dependants to cover more than just your mortgage – for example, other debts or ongoing spending.

We all know someone who has been affected by a life changing condition and we hope it never happens to us. Whether it be a stroke, heart attack, cancer or Parkinson’s Disease, critical illness cover pays out a tax-free lump sum to help minimalize the financial impact on your home, family and lifestyle. You are then free to spend the money how you wish, for example, clearing debts, adapting your home or paying medical bills.

If you are unable to work due to an accident or sickness, income protection pays a regular income. Designed to minimise the financial impact of being off-work, income protection insurance is available to self-employed workers, as well as those on a payroll. You can choose from two types of income protection insurance policies: short-term income protection, which typically covers you for up to two years, and long-term income protection which covers you typically until retirement.

If you have an existing life insurance, critical illness cover, or income protection policy, it is important to have these reviewed regularly. At Evoke Mortgages, we can do this for you. We’ll make sure that your chosen cover is still relevant for your current financial situation, giving you and your family peace of mind.