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Security cannot be underestimated and feeling safe about your home and future is an important part of living a happy and fulfilled life.

But how can you protect against the unexpected? Job losses, illness and accidents could have a massive impact on your life without warning, throwing your sense of security into chaos.

Thankfully there are ways to protect your family, home and lifestyle in the event that the worst should happen by taking out protection insurance.

What is protection insurance?

Protection insurance is actually a number of products that cover you across a series of scenarios that could threaten your ability to cover necessary payments, such as for a mortgage.

Taking a broad look at all your family’s needs is important when choosing protection insurance and making sure you are aware of all the products available.

These include:

  • Life insurance – this pays out a lump sum or monthly payments should you die. This makes sure your loved ones are provided for and may be sufficient to clear any remaining mortgage.
  • Critical illness cover – this policy sees a lump sum paid out if you suffer one of serious illnesses that are protected.
  • Income protection insurance – available as both short-term and long term protection this helps in the case of illness or suffering an accident that leaves you unable to work.
  • Family income benefit – a lower cost way to protect your family’s income in the event of a breadwinner’s death, where a tax-free sum is paid out monthly.

These products are what people actually need when looking for products such as ‘mortgage protection insurance’ or ‘family insurance’.

In providing this level of support, protection insurance products actually ensure that money continues to come into a household when the insured person is unable to work,suffers from a serious illness or ev dies.

Do I need protection insurance?

Put simply, if you have a mortgage to pay and/or a family to look after then yes, protection insurance is worth it. Having a roof over your head should not be taken for granted and unless you have enough in savings to cover the entire remaining balance of your mortgage, there is always the chance that you could lose your home if you were unable to work and maintain your mortgage payments.

Whilst protecting your property against the impact of death,  there are other factors to consider. Maintaining a lifestyle is one – having enough food to eat, paying bills, buying school clothes or paying for childcare so the healthy parent can work are just a few things to think about, When your income is stopped suddenly the luxuries may no longer matter, but there are many essentials that need to be considered.

More worryingly, what if you could never work again? Accidents and illnesses can strike when people least expect and can have a devastating impact on standard of living.

With the right level of protection insurance in place you can be secure in the knowledge that your mortgage will be covered, and that your family’s lifestyle can be sustained.

It is usual that a combination of policies offer the most appropriate level of protection insurance to make sure that you have ‘mortgage insurance’ and ‘family insurance’ to secure your home and cover monthly costs for your family should you ever need it.

How to find the most suitable protection insurance deals

Putting together the right polices for your family and working out exactly what cover you need can be complicated. You need to consider current and future earnings, household expenses, increased costs in the future and mortgage payments.

In addition, protection insurance needs to consider time frames, such as when a policy will pay out, how much will be paid and will the time-frame for payment provide adequate cover.

Taking professional advice will mean that you understand exactly what you need to ensure your family’s financial security through protection insurance.

Insurance brokers can advise on the right options for you, help you to understand how a product would work in real terms and can access the most appropriate deals.

For protection insurance that will give you peace of mind about the financial security of your family and covering your mortgage contact AMG Financial Solutions - Staffordshire on 01785 225983 or email stafford@amgfs.co.uk.

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