It’s the ultimate goal for people in the UK – “own your own home” is a sentence which is indoctrinated into British children from the money they’re born. It’s fascinating how much emphasis and importance those in the United Kingdom place on property ownership as the ultimate sign of success. Therefore it’s surprising that so many UK homes are at risk of being lost as homeowners are not taking responsible actions to protect their assets which they’ve worked so hard for, including saving tens of thousands of pounds in deposits to get the mortgage in the first place.
Mortgage Life Insurance
The latest statistics show that a massive 8.1 million of UK homeowners don’t have life insurance. Life insurance is an important piece of protection for anyone who does not own their house outright, as a loss in their income could mean they’re unable to pay the mortgage. There are several types of protection available, the most popular being term insurance in which you pay a monthly premium and in return get a fixed payout over a set period of time if you were to pass away unexpectedly.
A more niche type of protection, which has been designed for homeowners, is mortgage life insurance. This type of protection can either be for the remaining term of your mortgage, or it can be decreasing. If it’s decreasing this means that your potential payout will always match your outstanding mortgage amount. It’s therefore put in place to only pay off your mortgage so that if you were to die your dependents would be left your property debt free. This is a very kind and selfless gift as a mortgage would only add financial difficulties and stress to your loved ones. Without the mortgage life insurance your family may feel obligated to sell your house to pay off the debts, or the bank could make them sell it as the original contract was with you and them, not your family and them,
Cost of having a home
It can be expensive to run a home. Whether you rent or have a mortgage you are responsible for the many expenses which go with day-to-day living. For example, you will need to pay the utility bills like the water rates, sewage rates, and of course electricity. Then there’s internet services which can be expensive depending on where you live and how fast you want it. You’ll likely want entertainment packages like Netflix for the TV and Amazon Prime your music on Alexa and fast deliveries. Then there’s the costs of repairs and redecorating, you always need to have money aside as things break without notice such as your kitchen appliances and your electrics. Plumbers and electricians can be expensive to call out, especially if it’s an emergency and you need to get these contractors in out of normal working hours. Groceries are often not cheap and the tools required to make food, there’s also cleaning supplies to ensure your home doesn’t get too dirty and unhygienic. To use the bathroom daily you’ll need regular supplies of toilet paper, tooth paste and shampoo. The cost of living really adds up, much more than just a mortgage cost or monthly rent payment. This is another reason for getting life insurance, so that your loved ones aren’t left to find the money to pay for all these things without your income to pay for them.