Coreco’s Mortgage Protection Guide 2020
Now more than ever we want to ensure you’re protected. As we navigate through the ‘new normal’, making sure you and your family are financially protected is something that shouldn’t keep you up at night.
We also understand that a sudden loss can be a difficult process. As such, we’ve compiled a few pointers to consider in advance. But remember, should you have any questions we’re here to help.
1. Understanding your concerns
The unexpected loss of a family member, or loss of income, can have a major impact on personal finances. Yet the consequence of not having the right protection in place can be quite severe and may result in the loss of your property.
2. Are you financially exposed?
Looking at your own individual situation can prove to be exhausting, tedious, and sometimes overwhelming. It’s made far more difficult if you are suffering from a major illness and are unable to work. At a time of emotional and medical stress, financial pressures can have a negative impact on recovery. Ensuring protection is in place before any such situation will give you peace of mind financially, allowing you to spend all your time and effort on recovering.
3. How do I choose the right insurer?
With so many insurance products available supplying different levels of cover, how can you choose the right insurance product?
Firstly, make decisions based on your personal situation. Providers take a very different view on how they look at individuals based on various factors including medical background and job responsibilities.
These factors can affect the products available and more importantly, the cost of cover. Speak to an expert about your personal circumstance as this will allow for a suitable recommendation to be made. At Coreco we’ll help you to consider the most appropriate insurer with the right cover for you.
4. What does the application process involve?
When applying for a protection product it is important that personal details are disclosed to the insurer. This information is required to ensure that the policy is valid and protects you according to your situation.
Understandably, this is an area that needs to be completed with the utmost care. At Coreco, our qualified advisers are on hand to help you complete the application forms, making sure all the information has been fully disclosed on the application. This allows for a much quicker turnaround, as well as safeguarding the policy from being invalid at the point of claim.
5. How long does underwriting my policy take?
Anticipating how long an insurer will take to unwrite your policy is difficult to judge. This is because it varies from insurer to insurer. It’s heavily dependent on the disclosures made on the application and they’ll have to check the responses and supporting documentation to establish the required terms of the cover. However, if the preparation has been right this process can be very quick. Before any application is submitted, we can advise you of the potential timescales and evidence required so a fair reflection of the final terms will be given, to avoid any surprises!
6. What terms and “special terms” are offered?
Once the underwriting process has been completed, the insurer will offer terms on the cover. There are three options here:-
- The policy has been accepted on standard terms, which means they have been accepted with no exceptions at the price initially quoted
- The policy can be accepted with special terms. This can range anywhere from medical exclusions, to an increase in the premium
- In some circumstances, the policy may be declined by the insurer altogether. If this occurs, we will conduct a final search to ensure we have not overlooked a provider that can offer the protection.
7. How do I accept the offer?
Once all parties; the insurer and the applicant, are happy with the terms offered you will need to sign to accept them. This provides a date to commence the policy. Given the time it takes to underwrite, on occasions a health declaration may need to be signed to ensure your health has not changed during the process.
A copy of all the disclosures made will be sent and this needs to be checked to ensure they are accurate and nothing has been missed. If you’re unsure, we’re here to help. You can also select if you want the cover to start immediately or on a specified date in the near future if preferred.
8. What are guaranteed and reviewable premiums?
In most cases, the policy will be arranged with a guaranteed premium. This means that over the term of the plan, the cost will not change unless it is linked to inflation. There will be no insurer-based increase in the cover.
Alternatively, there may be rare occasions where reviewable premiums are offered which will depend on your personal situation going forward. For example, a short-term lifestyle change where the cover may need to be updated i.e. going from a smoker to a non-smoker. When discussing the application with your Coreco adviser, we can establish what the best type of premium is and suggest accordingly.
9. Wills and trusts
If you do not have a will in place your proposed beneficiaries, for example, your spouse or children, may not automatically receive the benefits you wish them to on your death. Your inheritance may fall into your estate, disputes may occur, and delays can be experienced which may result in financial hardship.
Together with advice on setting up trusts to protect your family, we help to ensure the right amount of money gets to the right people at the right time. A trust can help to avoid any Inheritance Tax issues and avoid probate, making sure the monies are paid efficiently. Contact us today as we can arrange that as part of our protection provision and there is no fee to pay for our trust service.
10. Can I review my cover mid-term?
We appreciate life is busy and it can have a habit of throwing up some major changes every now and then! It’s always worthwhile reviewing your provision regularly to establish whether the cover is still appropriate and if any changes need to be made. We automatically conduct regular reviews to make sure you have the most relevant and most comprehensive policy for your needs. We’ll also be in touch when your policy is nearing the end of its term.
For more information and to set up a personal, no-obligation review, please contact our Protection Specialist on 020 7220 5100 or complete our short enquiry form here.
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