Contact Us By Phone
0800 0 430 530

Income Protection

Lump sum payouts on death or earlier critical illness are only part of the jigsaw. Long term illness means your employer will eventually cut you adrift and leave you to the mercy of the State.

Income support will not assist your mortgage for the first nine months. When it does, it can cover your interest costs (not capital costs) for the first £100,000 only and will disregard any part of the mortgage that was used for consolidation, so it is not a perfect system.

Lenders will be sympathetic but eventually will lose interest and you then risk repossession if you cannot pay the mortgage.

There is an answer – two actually

Designed to pay your mortgage for up to 12 months in the case of involuntary unemployment and up to 24 months if you cannot work due to accident or illness.

Premiums are paid monthly and you can choose how much of your mortgage payment to protect.

Redwoods Financial Services will only recommend policies where we have checked out the small print, especially with regard to exclusions and eligibility. This is especially important if you are self employed.

This type of policy is usually restricted to claims for accident and illness but depending on the circumstances will make you a monthly payment, not for 12 or 24 months, but right up until your retirement. The policy can be tweaked to fit your circumstances and your pocket. Once it is up and running it cannot be cancelled by the insurer no matter how many claims you make (as long as you pay the premiums of course!). Premiums can be fixed or indexed. It is a must for anybody who is self employed or who is not entitled to sick pay from their employer.

Different companies offer different contracts. At Redwoods Financial Services we will look for the right policy for each client.

Income Protection cover means that you need never worry about illness preventing you from paying your mortgage.

That’s a nice feeling.