As the credit crunch continues you may feel there is little you can do to safeguard your home and finances. Cheshire Building Society advises that preparation is the best defence. Over the past few years, the UK has enjoyed a buoyant housing market, but the market is changing and it is likely that more difficult times lie ahead. The Society has tips on what you can do to ensure you are fully prepared for whatever the future holds.
Karen Torson, at the Cheshire says: “Most people do not like to think about what they would do if they lost their job or could not work through illness. It is an important consideration and even more so given the current economic conditions. You may not be able to safeguard your job but you can take steps to protect your mortgage payments and other outgoings.”
Whatever the future holds, the following tips will help to ensure you are prepared:
Make sure you have adequate protection for your needs - there are many different policies on the market offering various levels of cover, so consider what you actually require, be it mortgage protection, income protection or both.
Research cost options – it is important to consider an individual policy’s options to get the right cover at the right price for your needs. Many income protection policies allow you to defer when a claim would become payable to the point at which any sickness or redundancy payments you are eligible for run out. This can significantly reduce the cost of the premium.
Check the Small Print – Take time to read through the small print of any policy you have to ensure you fully understand how the policy works and how to make a claim. If in doubt, speak to the provider who arranged your cover.
Income protection insurance: News update: April 2008