11-09-2014

Protecting Your Income

Fox Davidson believe in a fully protected mortgage.

What is a fully protected mortgage you may ask, we shall explain: As a mortgage is almost certainly going to be your biggest ever loan and it is secured on the place you call home, the place you watch TV in, sleep in and bring your family up in we understand how important ‘home’ is to each of us.

Because we all love and need our homes Fox Davidson are passionate about ensuring that none of our clients find themselves in a position where they can’t afford their mortgage anymore and consequently they have their home taken away from them. We have seen it happen in the past and therefore we do all we can to ensure that any clients of Fox Davidson don’t see it happen to them.

How can you protect your home?

There are several ways, the most obvious is buildings insurance as without that if your house floods or burns to the ground you are unlikely to have the funds to build or repair it again. But asides from protecting the house you can protect yourself, your income and your family and this is achieved through income protection, life assurance, critical illness cover and family income protection and other similar policies.

Over the last 6 months, Fox Davidson have put in place protection policies to cover £8,529,347 worth of mortgage debt and have also put in place Income protection which will pay out a total of £176,800 per year in the event of a claim.

Income Protection

Statistics:

Did you know 32% of households have no savings what-so-ever? This is a huge percentage of people living with no Plan B for when an illness or accident leading to unemployment should hit. By implementing just a small amount Income Protection Cover, you can rest assured knowing you have a plan B in place to cover your monthly expenditure if disaster should strike.

Did you know the maximum the government will pay per week in Statuary Sick Pay is £87.55 for only 28 weeks, for just £22.54 our average client could have cover of £1,500.00 per month to cover you until retirement. Could you and your family survive on £87.55 per month?

How does Income Protection work?

Income Protection works when you can’t. If you find yourself unable to work due to an accident or long term sickness, your Income Protection cover will begin to pay you a monthly income to replace your monthly salary. The amount of cover you can apply for depends on your current salary at the time of application, this also determines how much your Income Protection policy will pay out each month in the event of a claim. For more information about how Income Protection works and to find the right cover for you, please give us a call and one of our Protection Representatives at Fox Davidson will be happy to help.

Too expensive?

We are all guilty of using the phrase ‘it’s too expensive’ to slip away from a hard sell, however, the reality is we probably have more than enough to pay for that Income Protection Cover, it’s just we don’t feel it’s needed and a meal out on pay day would taste better. However the reality is, if you were to become unable to work due to an accident or sickness, there would be no pay day, there would be meal out.

With that said, for some an extra out-going each month really is daunting, however most insurance providers have made note of this and do not want this to be the sole reason that someone chooses to live without a Plan B. In this case, the ‘Budget Income Protection’ plan is available, if it is too much of a stretch to cover a full Income Protection premium. Budget Income Protection works in a similar way to Income Protection, however rather than paying out for the full term of the policy, it will pay out a monthly salary for a maximum period (e.g. 24 months per claim), this maximum period varies depending on the insurance provider. Due to this, they are able to provide Income Protection for a smaller, more affordable monthly premium.  For just £12.10 per month our average client could have Budget Income Protection Cover of £1,500.00 with a 24 month payout period.

Contact the Fox Davidson Protection Team on 01173 736200