Probably not. As well as council tax, electricity, gas, and
telephone you will have regular bills coming in for all sorts
of things. And if you or anyone in your family falls ill, that might mean even more expense. It’s a very persuasive argument
for taking out protection insurance – not just to cover
your mortgage but also to cover your debts and protect your income.
Figures show that the average first-time buyer mortgage is £120,879*. On top of that borrowing on credit cards, finance deals, overdrafts and unsecured personal loans adds £4,226** per person.
It might be a good idea to consider a product
that offers decreasing term cover for the mortgage – that
means that as the amount owed on the mortgage reduces over
the years, so does the sum you’d receive to pay it off. Then, for a few extra pounds a month, you could add level term cover
for the other debts, which would mean the amount of cover would remain
constant throughout the life of the plan.
Deciding on the right type of cover, the
amount you need and for how long are just some of the things you
will need to think about when looking for cover that's right for you. A financial adviser can help you find the right protection for your circumstances.
* Creditaction.org.uk, December 2011, September 2011 figures
** Creditaction.org.uk, December 2011, October 2011 figures