Insurance – Protecting your family is important

When taking out a mortgage, there are several types of insurance worth considering to help protect both your home and your finances.

As a minimum, your mortgage lender will require you to have buildings insurance in place from the point of exchange or completion, depending on the property type. This helps protect the property itself against risks such as fire, flood, or structural damage.

Many homeowners also choose to arrange life insurance to help repay the outstanding mortgage balance if they die during the mortgage term, helping to reduce the financial burden on their family or dependants.

Beyond this, there are additional protection products that cover different risks, including:

• Critical illness cover — provides a lump sum if you are diagnosed with a specified serious illness
• Income protection — provides a regular monthly income if you are unable to work due to illness or injury
• Family income benefit — pays an ongoing monthly income to your family if you die during the policy term

The right combination of protection will depend on your personal circumstances, including whether you have dependants, how reliant your household is on your income, your existing savings, and whether your employer provides sick pay or workplace benefits.

Although these products are often arranged together, each protects against a different financial risk.

• Life insurance pays a lump sum if you die during the policy term. It is commonly used to help repay a mortgage or provide financial support for loved ones.
• Critical illness cover pays a lump sum if you are diagnosed with a specified serious illness covered by the policy, such as cancer, heart attack, or stroke.
• Income protection pays a regular monthly income if you are unable to work due to illness or injury, covering a much wider range of medical conditions than critical illness cover.
• Family Income Benefit is a type of life insurance designed to provide your family with a regular, tax-free monthly income if you die during the policy term, rather than paying a single lump sum.

Many people choose a combination of these products to create a more comprehensive protection plan. For example, life insurance may be used to cover the mortgage balance, while income protection or critical illness cover helps support day-to-day living costs if illness affects your ability to work.

The most suitable solution will depend on your income, financial commitments, family situation, and budget.

No. You are never obliged to arrange insurance through your mortgage broker, and you are free to shop around independently if you wish.

However, a broker who already understands your mortgage, financial commitments, and family circumstances is often well placed to recommend suitable protection options without you needing to repeat your information multiple times.

At MAPIO Financial, we search across a comprehensive range of protection providers in the same way we search the mortgage market, helping you compare suitable cover options based on your individual needs and budget.

There is no obligation to proceed with any recommendation, and all protection advice is subject to eligibility and insurer underwriting.

Yes. Protection products such as life insurance, critical illness cover, and income protection can usually be arranged at any stage — not only when you first take out your mortgage.

However, putting cover in place earlier means you are protected sooner, and premiums are generally lower when you are younger and in good health. Waiting until later can sometimes result in higher costs or more limited options if your health circumstances change.

Reviewing your protection regularly is also important, particularly after major life events such as getting married, having children, changing jobs, or moving home.

All insurance policies are subject to underwriting, policy terms, conditions, and exclusions.