When it comes to property you should always use protection

It's vital we plan and protect ourselves from the unexpected, writes Kevin Gardiner, Mortgage Operations Director at Aberdein Considine.

Aside from the ongoing pressures of planning a comfortable retirement, buying a home is probably the biggest financial commitment any of us will make. It is also, arguably, the largest single purchase most of us will make in one go.

It’s also a little odd then that most take a far shorter time to choose their next home than they do for much lower value items.

And whilst choosing your new home can be a hugely exciting exercise, particularly if you’re doing so for the first time, there is much, much more to the process. Indeed it can be a complex and stressful period, particularly when you don’t know what you don’t know.

Planning for the unexpected

As we move through our lives, hopefully we are increasing earnings and our wealth, and it’s vital we can protect what we have in case life doesn’t quite work out the way we hope.

Protection can come in many forms, from life assurance and critical illness to income protection, and there are options on the market which cover almost every eventuality. But when we think of protection and insurance, the spectre of the PPI scandal has made people wary of using these products and services. The media coverage of mis-selling and compensation claims has understandably created a high degree of scepticism.

But despite the horror stories we have heard over the last few years, there is no question that protection services and products can be a crucial part of financial planning. For those with mortgage and family commitments who lose their job or regular source of income, it can be devastating.

No one who owns or rents their home would choose not to have home insurance. If it makes sense that you protect your home and its contents, why wouldn’t you protect yourself and your family?

Maintaining in times of hardship

Insurance and protection exist for a very good reason. They are not there to suddenly increase your wealth but to maintain what you have in times of hardship.  

Your mortgage payment will likely be your biggest outgoing, and if, for whatever reason, you no longer had a regular income, what then?

There is a cost to this protection, no one should try to pretend otherwise. And when buying a new home, that cost is one of only a number of considerations when finances may be stretched.

But every individuals’ circumstances are different, and not everyone will need every type of insurance or protection.

It may seem odd in terms of financial planning to pay for something you hope you won’t ever require, but maybe it’s better to have it and not need it, than to need it and not have it.

Speak to an expert

At Aberdein Considine, we can help you protect yourself from the unexpected, giving you financial peace of mind.

To speak to Kevin or a member of his team about your circumstances, click here.