Mortgage income protection insurance for young people
When you’re young you feel free from financial responsibility and safe from the risk of long-term illness, but could you cope financially if you became ill? When you’re young it’s all too easy to feel free from financial responsibility and safe from the risk of contracting a long-term illness. This carefree attitude is all well and good, but a critical illness can happen to anyone at any time.
Everyone assumes it will never happen to them, particularly when they are young, but unfortunately there are too many examples of young people becoming seriously ill for this to be the case. If you are lucky enough to own a property then without mortgage protection insurance in place the consequences of a critical illness can be devastating. Let’s take a look at a typical example of a young person falling ill and how the situation would develop with and without mortgage protection insurance in place.
Emily is an ambitious 27 year old graduate with a talent for economics and an interest in local politics. Having found a job she loves, Emily soon saves enough money for a deposit on a house and takes her first steps onto the property ladder.
One evening Emily complains of feeling unwell and collapses an hour later. She is rushed to hospital where she is diagnosed with bacterial meningitis. Although out of serious trouble, the lingering effects of the illness mean that Emily is unable to return to work for the next six months.
Without mortgage protection insurance
Emily’s employers are supportive and give her all the support and encouragement she needs to assist her full recovery. The terms of Emily’s employment state that she will receive three months of sick leave on full pay, falling to 50 per cent of her salary thereafter. As she is young and has yet to build up her savings, Emily is faced with the prospect of worrying about meeting her mortgage repayments when she should be focused on making a full recovery.
With mortgage income protection insurance
With mortgage protection insurance in place the payout Emily receives is enough to comfortably meet her mortgage repayments for the three months her salary is reduced by half. She is also able to pay her living expenses with enough money left over to pay for additional treatment to help speed her recovery.