Protection · 6 min read
Bought a home? Review the financial risks around the mortgage too
Completing a mortgage solves the home-buying problem, but it also creates a long-term household commitment. A sensible next review asks what would happen to the payment if income stopped because of death, serious illness or a longer period off work.
Start with the mortgage and essential spending
Record the mortgage balance and monthly payment alongside the household's essential monthly costs. That creates the baseline financial need before thinking about insurance products.
Map the existing safety net
Include employer sick pay, death-in-service benefits, existing policies, savings and any other resources the household could genuinely rely on. Avoid double-counting benefits that are uncertain or temporary.
Separate different risks
Life cover, critical illness cover and income protection solve different financial problems. A lump sum after death is not the same need as replacing monthly income during a long illness.
Review again after life changes
A new child, salary change, larger mortgage, separation, business ownership or a change in employment benefits can make the old protection plan less relevant even if the policies have not changed.