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are different types of insurance that you can take out on your home
and mortgage. As with trying to find your actual mortgage you should
shop around for any insurance you take out – there are some good
deals, and some very poor ones too that should be avoided.
You’ll probably find that your
bank/mortgage provider will try to get you to take out a policy
with their own company – while they may push it hard, it’s often
not the best deal available so shop around on the internet and you’ll
probably be able to save yourself quite a bit.
Buildings
And Contents Insurance – You’ll want to
insure your home and it’s contents against damage. It’s important
to get it right when estimating how much cover you need – you don’t
want to pay over the odds for excessive cover, and neither do you
want to underinsure.
Look
at your possessions – do you have any antiques that need extra protection?
What type of furniture do you have? How much would all of it cost
to replace? Shop around on the internet to find some great deals
and you’ll save yourself thousands in the process (as opposed to
signing up to whatever your mortgage provider is trying to push
on you).
Mortgage
Payment Protection Insurance – this type of insurance protects
you against any loss of income that may affect your ability to make
your mortgage payments. This can be an important cover, especially
if you do not have the cashflow to make mortgage payments should
you lose your job/income source.
The
two important things to look out for are (1) when the insurance
payment starts after your loss of income (for example, is it 30
or 60 days?) and (2) how long are you covered for (you can often
get 12 to 24 months coverage).
As
with most insurance types, these vary widely so make sure you shop
around online and get the best deal for you.
Life
Insurance – With this type of insurance, should you die your
dependents will receive a sum of cash to replace a part or the full
amount of your earning power. If you’re single then this is cover
that you don’t really need – but if you’ve a wide and children who
depend on you putting food on the table and a roof over your head,
it may be cover that you should seriously consider.
Mortgage
Protection Decreasing Term Insurance This is a unique type of
coverage where as the amount owed on your mortgage decreases over
time, so do your insurance payments. The logic is that as your mortgage
decreases, you need less to cover it should anything bad happen
– so the insurance should also cost less.
Critical
Illness Cover – As you might think, critical illness insurance
protects you in the event that you develop a very serious injury/illness
(the types of illnesses are pre-set in the policy).
Standard Illness Cover – Also
known as permanent health insurance, this type of policy covers
you against most types of illnesses (typically you can expect 50%
of yor income to be paid out until recovery).
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