Many of us in the UK believe that if the worst happens “the state will protect us”. Sadly, the state has run out of money and benefits, particularly benefits for homeowners, have been cut dramatically.
A “widowed parent” with a newly born child could once have potentially received £119,052 from the state over time; and even the average payment under that old system was £29,000. Under the current system the maximum payout is just £9,800. This huge reduction came into effect, very quietly, in April 2017.
In November 2017 if you fall ill or lose your job the state will pay the mortgage interest of “eligible claimants” on loans of up to £200,000 after 39 weeks. From April 2018 they still will – but such payments will be a loan repayable on return to work or house sale. Either way the state will now want its money back – with interest!
Life insurance that pays off the mortgage & leaves money for the family on death and insurance that replaces income in the event of illness and/ or unemployment are absolutely essential. Both can be surprisingly inexpensive. We recommend that if you have had such cover for a while you have it reviewed and that if you don’t that you get some. Newer homeowners are particularly vulnerable here, budgets are tight and we all say we’ll get around to it eventually/ it will never happen to us. But sadly, sometimes it does – and the consequences can be disastrous. If your loved ones have bought a house – please make sure they have protected themselves.
If you, or those who you care about, have any questions please get them to contact the team here at Stoke House on 01233 722999. We really do see protecting families as our mission!