Protection Options

1. Term Assurance

A life assurance policy that only pays out a lump sum if the policyholder dies. It is set up for a specific period of time and is generally used for family protection as the sum assured that is paid out is the same as when the policy started.

2. Mortgage Protection

A variation of Term Assurance and is taken out to protect the mortgage. In the event of a claim the amount paid out is calculated to pay off the mortgage. As the amount paid out reduces over a period of time the monthly premium is cheaper than Term Assurance as there is less of a liability to the insurance provider. Should not really be used for family protection for obvious reasons.

3. Critical Illness Cover

This can be taken out as a separate policy or attached to Term Assurance or Mortgage Protection. As the title implies this policy pays out a lump sum on diagnosis of a range of critical illnesses and assumes you survive for a period of 14 or 28 days.

4. Income Protection (PHI)

This policy is designed to provide an income in the event of long term illness or disability. The deferred period (the time off work before you can claim) can vary according to personal circumstances and is especially important to those who are self employed. In the event of a claim a monthly income (tax free) is provided until a nominated retirement age or until the policyholder returns to work. There is no limit on the amount of claims that can be made. The maximum amount of income you can apply for is 65% of gross income less any state benefits that may be due.

5. Accident, Sickness & Unemployment

Very often taken out at the start of a new mortgage. In the event either of the three events happen a monthly income (tax free at present) is provided after a deferred period but only pays out for 12 months or 2 years. The policy can also be set up to cover all three at once or Unemployment only or Accident & Sickness only. If a claim is made that pays out for the 12 month or 2 year period (depending on which option is selected) the policy will cease. There are certain limitations on the amount of income a policy may be set up for. A typical example is the monthly mortgage payment plus insurance related costs plus 25%.

6. Building and Contents Insurance

We insure all types of property and the contents, which can include any personal possessions you may have.

Our Client Say

“Armchair Mortgages met my requirements of a Redundancy only policy as my occupation covers me when I am off work due to an accident or illness. After researching the market myself Armchair came up with an unbeatable quotation and dealt with me in a very professional manner. I have since referred them to one of my colleagues at work.”
Mr K from Walsall
“As my wife and I are very disciplined Armchair recommended a Current Account mortgage. We believe this advice will save us thousands of pounds over the term of our mortgage and have no hesitation in recommending their services.”
Mr M from Rugeley