Protection

Often listed as Mortgage and protection advisers the protection is more commonly known as insurance. In this section, I'll go over the most common types of protection that apply to individuals rather than the property or belongings.

Life Insurance

If you have dependents, it is especially important to obtain at least decreasing life insurance. This is a recurring monthly payment plan with a decreasing payout on death. The idea is that the payout will decrease as you pay off the capital portion of your mortgage over time. The goal is for the mortgage to be paid off if the policyholder(s) dies.

Accident, sickness and unemployment

Additional policies, which require a little more thought, can be taken out to cover other negative effects on income. As with most things of this nature, you have a range of options ranging from basic to premium. To begin, you can often include or exclude negative impacts depending on what coverage you already have as part of your employment. You can also reduce the monthly cost by changing the rules that cause the policy to payout. For example, how long do you have to be sick before the policy pays out?

Even if you have no dependents and particularly if you are the primary or sole breadwinner, these policies may keep the roof over your head when you are most in need.

Payment protection Insurance

Something that the entire country should be knowledgeable about, and if sold correctly, provides you with protection against loan payments for adverse effects on income. A policy that requires you to read the small print and understand when and how coverage is applied.

Mortgage payment protection

When considering life and income protection, dedicated protection should be considered. As with all of these factors, they must be considered as a whole, taking into account disposable income and the position of all individuals involved.