In today’s financial climate nothing is secure….
Mortgage Protection
Horror stories of homes lost through failure to meet payments are still widespread.
Buying your home is one of the biggest financial commitments you will ever make, so putting the right cover in place to protect it should be a top priority.
When buying your home you will typically be required to put mortgage protection in place. This cover ensures that the outstanding balance on your mortgage can be paid in the event that you die prematurely, rather than leaving the burden with your loved ones.
PGM Financial Services’ Mortgage Protection is one of the most flexible mortgage protection plans in the market today. It gives you great value mortgage protection with the flexibility to change your level or term of cover as your needs change. If you decide to move house, get married or have/adopt a child, you can increase the cover amount within three months without having to provide further evidence of health.
As well as clearing your mortgage on death, you can also use it to clear your mortgage in the event you suffer a serious illness like cancer, stroke or heart attack. Our mortgage protection package will:
- Provide you with a weekly amount for up to a year if you are unable to work due to injury resulting from an accident
- Pay you a daily amount if you are an in-patient in hospital
- Pay you a small lump sum amount if you break certain bones or have to undergo certain surgeries.
This is a highly flexible mortgage protection plan which allows you to:
- Increase or reduce your covermor
- Extend or reduce the term of your cover
- Add or remove benefits
- Increase the amount of cover within 3 months of moving house, getting married or having or adopting a child without having to provide evidence of health
- Move to a new mortgage or family protection plan without having to provide evidence of health if the “Medical Free Conversion” option is selected
- Avail of a children’s protection package
Case study
John is 30 years of age. He has just bought his first home with a mortgage of €200,000. He earns €2,500 a month and his monthly tgage repayments are €800. He wants to ensure that he can easily change his cover in the future as he plans on moving to a bigger home in about 5 years time.
In the event of serious illness or death
John knows he must have mortgage protection to clear his mortgage so it won’t be a burden to his family in the event of his death. He also wants the security of knowing he will be able to meet his mortgage repayments and maintain his current standard of living if he became ill over the long term and was unable to work.
If this happened his employer would pay him 50% of his salary (€1,250) for the first six months and he will be entitled to the State Illness Benefit of about €10,000 a year.
This would be insufficient to meet his monthly mortgage repayments, maintain his current lifestyle and pay his bills.
The solution
John takes out €50,000 Accelerated Specified Illness Benefit along with his €200,000 Lump Sum on Death cover. If he becomes seriously ill, the bank to which the policy is assigned will use the €50,000 Accelerated Specified Illness Benefit to meet his monthly mortgage repayments.
John also takes the “Medical Free Conversion” option as he plans to trade up in about 5 years time. This option allows him extend the term of his mortgage at a future date, without being medically assessed. This means that if his health deteriorates, he can get future cover at normal rates and not be declined because of his poor state of health at that time.