Securing Your Home’s Future: A Guide to Mortgage Protection on Long-Term Sick Leave

happy family out walking able to pay mortgage on sick leave

Owning a home is a significant achievement, providing a sense of security and comfort for you and your family. However, life’s unpredictability can pose challenges to maintaining this security, especially when it comes to keeping up with your mortgage payments. Events such as an accident at work or on the road, or being diagnosed with a prolonged illness which prevents you from working for a while can impact your earning potential and as a result impact your ability to keep up with monthly repayments.

Here, we delve into how you can safeguard your home and ensure financial stability should you ever face long-term sick leave from work.

Understanding the Risk

The prospect of long-term sick leave is daunting, with the potential to impact your income and ability to meet financial commitments such as mortgage payments. The stress of financial insecurity can also hinder recovery, creating a vicious cycle that’s tough to break. Recognising this risk is the first step towards mitigating it, primarily through strategic financial planning and the right insurance coverage.

Protection Policies: Your Financial Safety Net

When securing a mortgage, it’s crucial to consider how to protect your ability to pay it, particularly in the face of unexpected health issues. Here are the main types of protection policies designed to cover your mortgage payments during challenging times:

Income Protection

Income protection insurance provides a regular income if you’re unable to work due to illness or injury, covering a designated amount of your pre-illness salary as specified within the policy. Policies are customisable, with pay-out periods that can be aligned with your sick pay policy at work, ensuring that the insurance kicks in when needed. This insurance is particularly vital for those without substantial sick pay benefits or savings to fall back on.

Critical Illness Cover

Critical illness cover pays out a lump sum upon the diagnosis of certain specified illnesses, such as cancer, stroke, or heart attack. This payout can be used to cover your mortgage, medical costs, or any adjustments needed for your home, providing financial relief and peace of mind during a challenging period. It’s important to carefully review the list of covered conditions and the policy’s terms and conditions.

Life Insurance

Life Insurance guarantees the insurer a lump sum payment to your beneficiaries upon your death, in exchange for premiums paid by you, the policy holder, during your lifetime. Although life insurance will not payout during longterm sickness, it is still certainly worth considering when taking out protection policies for your mortgage payments as it helps to safeguard your loved ones’ financial future. Life insurance ensures that the mortgage and other living expenses can be taken care of, offering peace of mind to both you and your family.

Choosing the Right Policy

Selecting the right policy involves assessing your financial situation, understanding the terms and coverage of different insurance products, and considering factors such as:

  • Coverage Needs: Estimate the coverage you need based on your mortgage payments, living expenses, and any other financial commitments.
  • Policy Terms: Understand the deferment period, duration of coverage, and specific conditions of the policy.
  • Premium Costs: Premiums vary based on coverage, health, age, and lifestyle. It’s crucial to balance comprehensive coverage with affordable premiums.

Practical Steps for Policyholders

If you’re facing long-term sick leave, take proactive steps to manage your situation:

  • Notify Your Insurer: Contact your insurance provider as soon as possible to discuss your situation and start the claims process.
  • Consult Your Lender: Your mortgage lender may offer options like payment holidays or interest-only payments during your recovery period.
  • Seek Professional Advice: Mortgage advisors or independent insurance brokers can provide valuable guidance tailored to your specific circumstances.

Government Assistance

In addition to personal insurance policies, it’s worth exploring government benefits such as Statutory Sick Pay (SSP), Employment and Support Allowance (ESA), or Universal Credit. These benefits may provide additional financial support, although they may not fully cover your mortgage payments.

The Importance of Early Planning

The best time to think about mortgage protection is when you first apply for a mortgage. Early planning ensures that you’re covered from the start, providing peace of mind for you and your family. Regularly review your policies to ensure they remain aligned with your changing needs and mortgage balance.


While long-term sick leave is a challenging scenario, proper planning and the right protection policies can significantly mitigate its impact on your financial stability and home security. By understanding and utilising available insurances, you can navigate these difficult times with confidence, focusing on recovery without the added stress of financial insecurity.

Remember, investing in protection policies isn’t just about securing your finances; it’s about ensuring peace of mind during the unforeseen events life throws your way. Take the time to assess your options, seek professional advice, and choose the coverage that best suits your needs, safeguarding your home’s future no matter what comes.

Speaking with a mortgage and protection advisor may help to determine which insurances you would benefit most from, in order to safeguard against life’s unpredictability.

If you’d like advice on mortgages and protection products available and which may be right for you, contact one of our friendly advisors who would be happy to have a chat and help guide you.

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