Life Insurance

At Stonepath Financial Services we always recommend a Fully Protected Mortgage

We can access a range of insurers for your protection needs. Many banks and building societies and estate agents are “tied” to one insurer, and therefore cannot compete with us on cost or benefits as they only offer one product. This is a complex area and, in our view, is sometimes a more important decision than the mortgage. Whereas a mortgage may only last two or three years, the right protection could last the whole term!
We therefore always try and have a face to face meeting to discuss your individual requirements to help us with our recommendation. Should this not be possible, we can always email some examples to give you an idea of the costs involved to give a “fully protected mortgage”.
We have listed below a brief description of some of the many types of protection currently available, which may help narrow down your choice. Please feel free to call us and we will arrange an appointment, or for an illustration to be sent immediately.

Basic Explanation of Protection products:

1. Decreasing term assurance
   This product provides a lump sum on death and/or critical illness during the term, if eligible. Cover decreases each year, in line with the balance of a repayment (capital & Interest) mortgage.


2. Level Term Assurance
   As above, but cover remains level throughout the term.


3. Permanent Health Insurance/Income protection
   Provides a long term, usually Tax Free income, if you are unable to work due to accident or sickness, if eligible. This usually will be for at least the mortgage term, or preferably to retirement. This tends to be set up to take over from when your employer’s sick pay would normally end e.g. 13 or 26 weeks.


4. Mortgage payment protection insurance (MPPI/ASU)
   Usually provides short term protection against sickness and/or redundancy, if eligible. Can be from Day 1 or 30/60 days and lasts 12 - 24 months in either event.