Guides
Why protection cover should be reviewed after every mortgage change
Remortgaging or extending a loan changes how much cover your household needs — yet many policies stay frozen at the original sum assured.
When you first buy a home, advisers often recommend life cover that matches the loan. Five years later you may have remortgaged for a larger amount, added a partner to the deeds, or switched from interest-only to repayment — while the original policy still sits at the old sum.
Review three numbers together: outstanding mortgage balance, monthly household outgoings that would continue if one earner stopped working, and any employer death-in-service benefit. Death-in-service is helpful but usually ends when you leave that job, so it should not be the only cover for a long mortgage.
Critical illness and income protection answer different questions. Critical illness pays a lump sum on specified diagnoses; income protection replaces a portion of salary during long illness. Mixing the two without checking overlaps is a common reason clients feel over-insured in one area and bare in another.
A mortgage and protection advice appointment at Cedar Wharf includes a short schedule showing cover versus loan, so you can see at a glance whether a remortgage has left a gap.