We all should know what would happen if you stopped paying your mortgage – you could end up losing your home.

Think about the consequences of losing your main income through redundancy or even suffer from a critical illness and to be off work for an untold period of time?

In the modern commercial environment there is no such thing as a “job for life” anymore and we see the real strain put on families becoming more and more common when their main source of income has been stopped.

What safe-guards can be put into place to safeguard your family?

You can cover your mortgage with some form of life assurance. This would mean that in the event of your death, a lump sum will be paid, thus allowing your mortgage to be paid off. Giving your family the ability to remain in your family home, without having to worry how to pay the mortgage.

You can also insure your income. If anything should happen to you or your job, and as long as your insurance is adequate and fits your situation, you will receive a monthly payment that will cover your outgoings for as long as the cover is due to run. This way does not pay off your mortgage in a lump sum, but allows you to pay your mortgage on time.