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Do you have worst case scenario protection?

Get mortgage protection advice when you purchase your home

Thursday 20 December, 2018

Thomas Oliver’s Hertfordshire Mortgage Brokers and protection specialists, Vishal Gulrajani and Thomas Wheatley consider when homeowners should purchase mortgage protection policies.

Consider protection policies when you take out a mortgage

A big part of the financial planning process is protecting yourself in a worst case scenario. This becomes of particular importance when acquiring a residential home, especially if you have family members who rely on you. By protection we consider the following: 

  • Life cover
  • Critical illness cover
  • Income protection
  • Accident protection 
  • Key persons insurance

Not all of this protection cover will be relevant to you and we often have to prioritise when working within a budget, but when Thomas Oliver offer mortgage advice it is something we discuss with clients,

Key factors about Protection

One of the key factors about protection is obviously pricing but as most insurance companies compete with each other the pricing tends to be relatively competitive when insurers provide the same cover. 

Although pricing is very important clients tend to be aware of the risks of not having any protection policy. All our Thomas Oliver clients are warned of these risks when we offer mortgage advice and when it is applicable we encourage clients to seek out some sort of protection cover.

Vishal Gulrajani, Mortgage Broker in Goff’s Oak & Cheshunt, Hertfordshire said:

‘One of the biggest issues I found historically was the amount of documents and time it took to get an insurer to make a decision when clients had an adverse health condition. Unfortunately in the past the industry has witnessed fraudulent claims and non-disclosure in relation to protection policies. This led to insurers being more prudent and going through stricter assessments when offering a client cover. As a result sometimes clients can be left frustrated regarding the length of time it takes and the amount of documentation needed to get protection cover, so some give up on the process. It is now reassuring to see that several lenders including Legal and General have made many of their documents ready for online authorisation. These include trust documents and GP consent forms. This speeds up the protection process and allows documentation to be stored securely and easily so the client doesn’t have to complete unnecessary paperwork.’

Thomas Wheatley, Mortgage Broker in Tottenham, North London said:

‘Overall we are seeing a massive improvement not only in the protection cover provided by insurers but also the paperwork and administration relating to the new policy, which helps you get the protection cover you need more quickly and means less risk of something happening during the process which could delay it. However this doesn’t sometimes help speed up the doctors getting a GP report over to the insurer. If something happens to you during the mortgage process you may then be unable to get protection cover. Thomas Oliver have an administration team to help speed this process up and make sure you get the protection cover you need as quickly as possible. Our mortgage broking team will obtain a financial risk assessment and our mortgage advisers work with you to offer an appropriate solution. We will explain the protection cover we recommend to you, which is another reason many clients choose to work with a mortgage broker rather than purchase protection policy independently. If you want mortgage advice and work with one of our mortgage brokers please contact us on 01707 872000.’

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