While Mortgage Studio does not offer insurance advice, part of our responsibility as a Mortgage Adviser is to recommend that our clients speak with a professional regarding personal risk insurances. Banks don't generally require borrowers to have life insurance, income protection insurance or the like, but a lot of people aren’t aware of the benefit / comfort such insurances can provide.
You may have noticed that when you visit a bank, you are asked about insurances (life, income protection, house, contents, etc.), and bank staff often try to upsell the products offered by the bank. It’s important to be aware that bank insurance products tend to be a general, off the shelf product, rather than a product that is tailored to your specific needs. This is also true of standard policies with other insurers (e.g. AA, Tower, IAG, etc.). While you might think that the person you’re dealing with has your interests at heart, it’s important to remember that they are not independent, and they can’t recommend other companies insurance policies that may be better suited for you.
Unless you work in the insurance industry, insurance policies can be hard to understand, or too long (so people don’t bother reading them). This can cause problems come claim time, particularly if you thought you were covered for something that you’re not.
If you struggle to understand complex policies and words that are unfamiliar, it can be a good idea to find an (independent) Insurance Adviser who can talk you through the whole process. They can help you determine what cover you have, if that cover is sufficient, and make recommended changes to existing policies.
It’s important to regularly review your insurances as circumstances constantly change, and you will want to be sure you are adequately protected. If you haven’t reviewed your insurances for a while, it might be worth contacting your Insurance Adviser to arrange a review. If you do not have an independent Insurance Adviser we can recommend one.
As with insurances, it is also important to regularly review your Will, to ensure that it reflects your true, current wishes. If you get married, divorced, have more children, etc. your Will may need to be updated to include (or remove) certain provisions. Your Solicitor should be able to assist you with reviewing your Will.