Top 5 Insurance Add-Ons to Protect Your Mortgage and Family Finances

Buying a home is a huge financial commitment, and so it goes without saying that protecting that investment with the right insurance can help give you the peace of mind that your investment is safe – no matter what life throws at you.

Without the right protection, losing an income, facing unexpected illness, or even dealing with a home emergency can quickly escalate into making it very difficult to keep up with mortgage repayments.

But what insurance do you need for a mortgage and what does mortgage insurance cover you for?

In this article, we explore the top five insurance add-ons that can help protect your mortgage and provide lasting financial security for you and your family. Let’s jump in.

1. Life Insurance

Life insurance for a mortgage is an insurance policy that can help homeowners protect their family’s finances should they pass away. Usually, a life insurance policy will pay out a lump sum of money, and these funds can be used for any purpose the beneficiaries choose. However, they’re generally used to help cover mortgage repayments, funeral costs, debt, or even managing everyday bills in a time of need.

One of the most common questions that we get asked here, at Boon Brokers, is: do you need life insurance for a mortgage?

The answer is no, there is no obligation to having life insurance to secure a mortgage. However, while it may not be mandatory, the insurance provides an important financial security that goes beyond the safety of today.

For families or joint homeowners, the reality is that should one partner pass away, the other is still left to manage the full financial responsibility. Should this happen, life insurance provides a cushion, helping your loved ones stay financially secure when it’s needed most.

In short: Life insurance helps give you, the policyholder, complete peace of mind that your family can stay in their home and maintain their standard of living should something happen to you.

Key Benefits of Having Life Insurance

Life insurance is a financial strategy that protects your family and your home. Here are some of the main benefits that outline how life insurance can make a real difference:

• Protects your family from inheriting mortgage debt
• Ensures mortgage repayments can continue if something happens to you
• Provides long-term financial security for your loved ones

It’s important to choose insurance that fits your situation. When picking the best life insurance for mortgage cover, think about you and your family’s circumstances, the size of your mortgage, and the type of policy that works best for you.

Talking to a trusted insurance adviser can help you uncover all the available options that match your requirements. At Boon Brokers, we take the time to listen to your needs and long-term goals. As a whole-of-market brokerage, we will compare protection insurance from a wide-range of providers in order to find the cover that best fits your situation and budget.

2. Critical Illness Cover

Critical illness cover is a type of life insurance policy that will protect your financial security in the event that you’re seriously ill or injured. The provider will pay out a lump sum in the event that you are diagnosed with a serious illness that is listed in your agreed policy and the money received from this insurance policy can be used in any way that you need, helping you decompartmentalise and focus on recovery without the financial pressure.

There are a wide-variety of illnesses that can be covered in a critical illness policy, and most UK providers will allow you to customise your policy to match your requirements. Standard policies will typically cover a core set of illness, such as:

• Cancer
• Heart Attack
• Stroke
• Multiple Sclerosis
• Major Organ Transplants

However, this list is just an example, and it’s important to note that providers will have their own criteria and list of illnesses. For this reason, it’s best practice to seek advice early on. Talking with a trusted insurance broker can help you select, not only the provider that matches your requirements, but a policy that is tailored to your needs.

Being diagnosed with a serious illness can put a heavy financial strain on you and your family. Critical illness cover creates a financial safety net by providing a lump sum that can help with medical bills, keeping up mortgage payments, down to covering everyday living costs while you’re potentially out of work and focusing on recovering.

Key Benefits of Critical Illness Cover

Critical illness cover can help you ensure your financial stability when you need to focus on your own personal wellbeing. Below we have listed the main benefits of having critical illness insurance:

• Covers Mortgage Payments: Keeps your home secure if illness prevents you from working.
• Supports Everyday Living Costs: Helps pay bills, childcare, or essential household expenses.
• Provides Peace of Mind: Reduces financial stress for you and your family during a time of weak health and illness.

Working with a trusted insurance advisor can help guide you to the policy that matches your requirements and long-term goals. At Boon Brokers, our expert advisers listen carefully to your situation, worries, and wants. We will compare critical illness policies from a wide range of providers to find the cover that best matches your needs.

3. Income Protection

Income protection insurance is a specific insurance policy that is designed to replace part of your salary if you are unable to work due to illness or injury. Instead of a single one‑off payout, as we have explored with life insurance and critical illness cover, an income protection policy provides steady and regular monthly payments, helping you stay on top of bills while you’re unable to work.

While other insurance add-ons are often designed with families or joint homeowners in mind, income protection is different. It’s a versatile policy that can benefit almost anyone who earns an income. Whether you’re single, self-employed, or supporting a family, income protection is the type of cover that helps keep your finances stable if you’re suddenly unable to work.

So, do you need income protection insurance for a mortgage?

No, similar to critical illness cover, income protection is not a requirement for a mortgage, but without it, missing work could put a significant strain on your household finances. In a practical sense, even a short-term loss of income can make it hard to cover your mortgage, utility bills, and everyday expenses.

Key Benefits of Income Protection

• Provides Ongoing Income: Income Insurance will replace a portion of your salary while you’re unable to work due to a diagnosed illness.
• Keeps Bills and Mortgage on Track: With the safety net of income protection, you will have protection against falling behind on essential payments.
• Eases Financial Pressure: Allows you to focus on recovery without the added stress of losing your income.

Working with a whole-of-market brokerage like Boon Brokers ensures you can compare income insurance from multiple providers. This makes it easier to find a plan that fits your earnings, lifestyle, and budget, giving you the protection your household truly needs.

As with every insurance policy, it’s important to compare different policies from a range of providers. Each insurer offers different levels of cover, payment periods, and claim conditions, so taking the time to review your options can make a real difference. The right policy should reflect your income, lifestyle, and financial commitments, making sure that you’re fully supported if you ever need to claim.

4. Mortgage Repayment Protection

Mortgage repayment protection insurance is an insurance policy that is specifically designed to help you keep up with your mortgage payments if you lose your income due to redundancy, illness, or injury.

Unlike income protection, which will pay a portion of your salary each month, mortgage repayment cover does exactly what it says on the tin – and focuses specifically on ensuring that your mortgage is paid if you can’t work for a period of time.

In the scenario that you already have other forms of insurance, you might wonder whether mortgage repayment protection is necessary. Well, it depends. What makes this policy stand out is that it focuses solely on your mortgage payments. Instead of replacing your income in full, it ensures your mortgage is covered if you’re unable to work.

With other policies that may reward a lump-sum or monthly financial support, often the funds are to be used at your discretion. Mortgage repayments, on the other hand, are only dedicated to repaying your mortgage costs and cannot be used for other financial benefits.

Key Benefits of Mortgage Repayment Protection

• Covers Monthly Mortgage Payments: Keeps your home secure if you are unable to work.
• Protects Against Redundancy or Illness: Provides support during an unforeseen temporary loss of income.
• Short-term Safety Net: Relieves stress by covering mortgage repayments for a set period, usually up to 12-24 months.

This type of cover can be especially valuable during uncertain economic times or in roles where redundancy is a possibility. It ensures that, regardless of your employment situation, your home remains protected while you get back on your feet.

5. Home Insurance

Unlike other types of cover, home insurance isn’t an optional add-on and lenders require it as a condition of mortgage approval. This is to protect the property against damage from events such as fire, flood, or theft. Without home insurance, your mortgage will not usually be approved.

There are two main types of home insurance:

• Buildings Insurance: This type of cover is specific to the physical structure of your property, including the walls, roof, floors, and permanent fixtures such as kitchens and bathrooms. Having building insurance helps cover expenses for repairs or a full rebuild if your home is damaged by events like fire, storm, or vandalism.
• Contents Cover: This type of cover protects the items inside your home, such as furniture, electronics, and personal belongings, against theft, loss, or damage. While contents cover is not a mortgage requirement, it offers valuable peace of mind for homeowners and tenants alike.

It’s important to note the difference between the two: while building insurance is a mandatory part of securing a mortgage, many homeowners choose to include contents insurance too, covering the belongings inside the home.

Together, these policies go hand-in-hand to help ensure both your property and possessions are financially protected if something unexpected happens.

Key Benefits of Home Insurance

• Protects Your Property: Covers the structure of your home against damage caused by fire, flooding, storms, or vandalism, helping you manage costly repairs or rebuilding expenses.
• Safeguards Your Possessions: Protects your personal belongings, such as furniture, electronics, and valuables, ensuring you’re not left out of pocket if items are stolen, lost, or damaged.
• Meets Lender Requirements: Most mortgage providers require buildings insurance before approving a loan, making it an essential part of securing your home purchase.

When comparing policies, look closely at what’s included and excluded. It’s often better to choose comprehensive cover that reflects your home’s true rebuild cost and lifestyle rather than opting for the cheapest premium available.

What Other Home Insurance Add-Ons Should Homeowners Consider?

After securing your standard home insurance, it’s best practice to explore any additional cover options that might match your requirements of long-term plans.

Today, there are a variety of insurance add-ons that can be selected, and while all are designed to provide extra protection and peace of mind for homeowners, it does not necessarily mean that you require all of them.

However, choosing the right combination can allow you to tailor your insurance to your lifestyle, property, and financial needs.

Below, we have created a clear overview of the most common home insurance add-ons and why they can be beneficial:

Adding these options can make a real difference in how secure you feel in your home. Whether it’s protecting against everyday accidents, handling urgent repairs, or making sure your beneficiaries receive payouts quickly, home insurance add-ons can provide you with the flexibility and reassurance that standard cover alone might not offer.

Want to know more about home insurance?

At Boon Brokers, we offer expert guidance on all types of home insurance policies. As a fee-free, whole-of-market brokerage, we can help you compare options from multiple providers, ensuring you find the cover that best protects your home and belongings while fitting your budget.

How Do I Choose the Right Mortgage Protection Add-Ons in the UK?

From mandatory home insurance that protects your property to optional protection add-ons like life insurance, choosing the right combination of insurance policies can quickly escalate to feel overwhelming without help.

Working with a trusted insurance broker can help translate the jargon into real-life practical value. They can review your circumstances, explain the different types of cover, and help identify which add-ons provide the most value for your situation.

At Boon Brokers, we take the time to understand your needs and financial priorities, ensuring any insurance policy is tailored to you. We offer a fee-free, whole-of-market service, comparing policies from multiple providers to find the cover that best suits your needs and budget.

Our dedicated advisers are on hand to answer any questions and guide you through every step of the process, making it simple from start to finish.

Contact Boon Brokers today to discuss your mortgage protection options and get personalised advice on the right combination of insurance add-ons to secure your home and finances.