Can we learn from the pandemic?
Every new scenario should, in my opinion, be viewed as an opportunity to learn something. We’ve certainly had plenty of opportunities to try new things during the recent Covid lockdowns. We were reminded if nothing else, that things can change in an instant.
I’ll be the first to say that in January 2020, I was looking forward to a steady year of assisting clients and going about my daily routine. How could I have been so wrong? Everyone else, I’m sure, anticipated 2020 to be normal, and we were all in for a rude awakening.
We were suddenly made keenly aware that the steady and healthy existence we all had, complete with a reliable salary, required a bit more protection. It’s a good reminder that we should all prepare for the unexpected and ensure that we can keep going if the worst happens.
Covid is presumably a one-time annoyance, but it did serve as a reminder that we need to safeguard our houses and lives by insuring ourselves against the upheavals that life might bring. When it comes to a new mortgage, a buy-to-let investment, or any other long-term financial commitment, it’s important to be prepared in case things don’t go as planned.
As a reminder, these are some of the insurance topics that everyone should consider. If something goes wrong, you’ll have peace of mind knowing that your loved ones are financially secure and that you’ll be able to pay your mortgage and other important obligations.
Protecting your income
Fortunately, most illnesses are very temporary. At most, a couple of days off work for a severe cold or a week for a serious virus. However, this isn’t always the case.
According to the Association of British Insurers (ABI), around a million workers were sick in 2017. Statutory Sick Pay (SSP) is sometimes insufficient to sustain your standard of living. Income protection will kick in after a certain amount of time, generally after a waiting period, to help with the financial impact of losing a monthly paycheck. If you currently have Income Protection Insurance, it’s a good idea to review it on a monthly basis to make sure it’s still adequate in the event you need it.
Protecting your properties
People frequently inquire if they require Landlord insurance in order to rent out their home. There are two parts to the solution. No, it is not a legal need to obtain landlord insurance. Is that, however, something you should have? Yes, for a thousand different reasons. Yes, absolutely. It’s possible that your buy-to-let mortgage offer will require it as well.
Also, even if you rent your house to a family member, standard home insurance is unlikely to protect you. Would you leave your home unprotected if you didn’t have property insurance? The issue with landlord insurance is fairly similar. The peace of mind that landlord insurance provides cannot be overstated.
Life insurance and critical illness products
These two frequently go hand in hand, and critical illness coverage is included in many life insurance contracts. Similar to income protection, you should examine them on a regular basis to ensure that not only are you paying the right price but also that you have enough money to make a decent payment in the event of a severe illness.
It’s easy to make the mistake of not insuring yourself enough, so consider the worth of your home and your family’s needs realistically.
Don’t forget to protect your pets
It may not seem as crucial as the others, but if your beloved dog requires long-term therapy, you may find yourself with a difficult emotional and financial dilemma. Something as easy as a minor procedure or a broken limb for a human may be a significant financial burden for a dog or cat. There is no NHS for dogs, so you might be looking at thousands of dollars in vet expenses for even simple surgery.
When you take out a mortgage or invest in a new property as a home or an investment, you must be realistic about your insurance and your continuing well-being in case things go wrong. The epidemic will hopefully pass and everything will return to normal, but the reality of the unexpected will linger.
If you have any questions regarding the right method to handle your mortgage, give us a call. We’d be delighted to talk about your requirements with you so you know where you stand.