Protection Advice UK

Protection Built Around What Matters Most

A mortgage may be one of your biggest financial commitments, but it is only part of the picture. Your home, household or business may depend on income continuing, and illness, injury or death can create financial pressure far beyond the mortgage payment.

At PBSBrokers, we help individuals, families, homeowners and business owners review the risks that matter, the protection already in place and any genuine gaps that may need addressing. Our protection services include Life Cover, Critical Illness Cover, Income Protection, Home & Contents Insurance and Business Protection.

Protect Your Home

Consider how the mortgage and essential housing costs would be managed if illness, injury or death changed the household finances.

Protect Your Income

Review how long savings, employer sick pay or other resources could support normal commitments if you were unable to work.

Protect Your Family

Consider who relies on your earnings, care or financial contribution and what support would be required if circumstances changed.

Protect Your Business

For owners and directors, the loss of a key person can affect revenue, borrowing, ownership and day-to-day continuity.

PROTECTION NEEDS CHECK

Start With the Risk, Not the Product

Good protection advice begins by identifying what could become financially difficult, what support already exists and where a real gap remains.

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Financial Risk

Mortgage payments, household costs, lost earnings, dependants or business commitments that could be affected.

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02

Existing Resources

Savings, employer benefits, existing policies, partner income and other resources already available.

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03

Protection Gap

The part of the financial risk that may still need to be addressed through appropriate cover.

Core principle: Protection should be based on genuine financial risks and gaps, not on buying every available type of cover.

What Types of Protection Can PBSBrokers Help With?

Different types of protection address different financial risks. Life cover, critical illness cover and income protection work in different ways, so the starting point should be the event you want to protect against and its potential financial impact.

Protection advice built around your circumstances

Protect the Financial Plan, Not Just the Mortgage

Protection can help support the wider financial plan if illness, injury or death changes your household or business circumstances.

What Does Mortgage Protection Actually Mean?

The term “mortgage protection” can refer to different types of cover rather than one single product. The appropriate option depends on the financial risk you want to address and the circumstances in which the policy would pay.

Home & Contents Insurance

Buildings insurance generally protects the structure of the property and permanent fixtures against insured events. Where a property is mortgaged, suitable buildings insurance is normally required by the lender, although arrangements may differ for some leasehold properties.

Contents insurance covers personal possessions according to the policy terms and is generally optional rather than a mortgage requirement. In both cases, cover limits, excesses and exclusions should be considered alongside the premium.

 

How Much Protection Do You Actually Need?

There is no universal level of protection that suits every household. A protection review should consider liabilities, ongoing household needs, income that could be lost and the resources already available, including savings, employer benefits, existing policies and other household income.

Liabilities

Mortgage, loans and other financial commitments that would continue after a major life event.

Household Needs

Essential expenditure, childcare and other family costs that may need ongoing funding.

Income at Risk

The earnings or financial contribution that could disappear if someone dies or cannot work.

Existing Resources

Savings, employer benefits, existing insurance and other household income already available.

Types of Life Cover

Life cover can be structured in different ways depending on the type of financial protection required. The most suitable structure will depend on your circumstances, responsibilities and the need you are looking to protect.

Level Term Life Insurance

The amount of cover generally remains the same throughout the policy term. This may be suitable where a fixed level of financial protection is required.

Decreasing Term Life Insurance

The amount of cover reduces over time and is commonly used alongside a repayment mortgage, where the outstanding mortgage balance is also expected to reduce.

Family Income Benefit

Instead of providing one lump sum, Family Income Benefit can provide regular payments for the remainder of the policy term following a valid claim.

Whole of Life Cover

Designed to provide lifelong cover rather than protection for a fixed term, provided the policy remains in force and required premiums are maintained.

Business Protection

For business owners and directors, protection can also help address risks associated with the loss of a key person, business borrowing or changes in business ownership. Options can include Key Person Protection, Share Protection, Business Loan Protection and Relevant Life Cover.

What Affects the Cost of Protection?

Protection premiums can depend on the type and amount of cover, policy term and underwriting. For life and health-related protection, age, health, medical history, occupation, smoking status and lifestyle may also affect the cost.

The lowest premium is not automatically the best measure of value. Policy definitions, exclusions and the circumstances in which benefits may be paid also matter.

Medical History and Underwriting

Depending on the cover, an insurer may ask about medical history, current health, medication, family history, occupation and lifestyle. The outcome can vary by insurer and applicant.

An application may receive standard terms, an adjusted premium, an exclusion or a request for further medical evidence. In some circumstances a decision can also be postponed or cover declined. Application questions should therefore be answered fully and accurately so the insurer can assess the risk using the correct information.

Existing Cover Should Be Reviewed Before It Is Replaced

Taking out a newer policy does not automatically mean improving your protection. Existing cover may have been arranged when you were younger or before changes to your health, while a replacement application can involve new underwriting, different exclusions or a higher premium.

The right approach is to compare what you already have with what the proposed arrangement would genuinely improve. Existing cover should not normally be cancelled until any replacement has been accepted, started and its terms are understood.

PROTECTION REVIEW

When Life Changes, Review the Financial Safety Net

Protection should reflect your current responsibilities rather than the circumstances that existed when an old policy was first arranged.

Buying a HomeMoving HomeHaving ChildrenChanging JobBecoming Self-EmployedStarting or Growing a Business
01

Understand

Review the home, mortgage, income, family, business interests and existing benefits.

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02

Identify the Gap

Establish which events could create meaningful financial pressure and what is already covered.

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03

Review Options

Consider suitable forms of cover, policy structures and insurer terms for the identified need.

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04

Put Cover in Place

Understand the premium, terms, exclusions, start date and circumstances in which benefits may be paid.

Protection should be reviewed when major changes affect your household, employment, borrowing or business circumstances.

Protection Advice FAQs

No. Life insurance is not a legal requirement for obtaining a mortgage in the UK. Some borrowers choose it because they want financial provision for dependants, household costs or the mortgage if they die.

No. Critical illness insurance is based on the conditions and definitions contained in the policy. A diagnosis generally needs to meet the relevant policy definition for a claim to be considered.

No. Income protection generally provides regular payments where covered illness or injury prevents you working, while critical illness cover normally provides a lump-sum benefit after a qualifying diagnosis. They address different financial risks.

Buildings insurance is not a universal statutory requirement, but mortgage lenders normally require suitable cover for the mortgaged property. Leasehold arrangements can differ where the building is insured through the freeholder or management arrangements.

Not necessarily. Savings, employer benefits, existing policies, liabilities, dependants and other household income can all change what protection is appropriate. A review should identify the financial gap before deciding which type of cover is relevant.

Common review points include buying or moving home, remortgaging, having children, changing employment, becoming self-employed, starting or growing a business, taking on significant borrowing or experiencing a major change in household income.

Amir Shojaee

Director and Founder of PBSBrokers
CeMAP Qualified Mortgage Adviser

At PBSbrokers, we offer a free initial consultation to understand your existing protection, financial commitments and the risks you may wish to protect against. We can then help you consider suitable protection options based on your circumstances.

Book your free protection consultation below.