rainbow mortgage services

• home
• about us
• specialist
• online tools
• insurance
• contact us

Buildings Insurance

Buildings insurance protects your property against insured risks such as fire, flood, subsidence, earthquake, lightning damage, damage from vehicles etc. It is a mandatory requirement of all lenders upon taking out a mortgage.

It is also common for lenders to have their interest noted on your buildings insurance policy.

Contents Insurance

Contents insurance protects your belongings and furniture against all of the above and also theft and optionally accidental damage.

Also you can protect high risk/high value items such as bikes, items in your shed, jewellery, and computers whilst at home and also whilst away from the home. This will incur an extra cost on your policy premium.

back to top

Term Assurance

Level Term Assurance is life cover that stays level throughout the term of the policy, and is usually geared for the same term of your mortgage to coincide with the final payment date.

This type of cover is often used with interest only mortgages, or by those who would like their family to have a surplus sum on their death after the mortgage has been paid off (if the mortgage is a capital and interest mortgage), although these are not exclusive reasons for taking out Term Assurance. As the term of the mortgage continues, the cover remains in place at a consistent level.

Decreasing Term Assurance (sometimes known as mortgage protection insurance don’t confuse this with mortgage payment protection insurance), is a Life Assurance contract where the cover reduces over time, as the outstanding balance on your mortgage decreases.

If you have a repayment mortgage, and just want to protect your mortgage upon death, then decreasing term assurance maybe the most appropriate and cost effective method for you, depending on your circumstances.

Term Assurance policies have no cash in value and there are no benefits on survival. If you do not pay your premiums, cover will cease and you will not receive a refund.

back to top

Critical Illness Cover

The aim of Critical illness cover is to ensure that your mortgage is repaid or you have money for your own reasons should you suffer a critical illness such as a heart attack, cancer, stroke, or other serious illness. Upon a successful claim you will receive a tax free lump sum, a set period after the point of diagnosis, usually 28-30 days.

It has now been evidenced, that at some stage in your life, you have a one in three chance of suffering a critical illness, and the likelihood increases with age, state of health, and of course the occurrence of previous illnesses of this nature in your close relatives.

Ask yourself - how would you repay your mortgage, and maintain your standard of living if you were diagnosed with a Critical Illness?

It is important to remember that not all Critical Illness becomes terminal illness, and the majority of people survive.

These questions need serious thought and consideration when reviewing your financial situation, particularly if you have young children or dependants.

What happens if you are self employed? Or Employed but without full sickness benefit?

If you had taken Critical Illness insurance out, the life insurance company would be able to pay out the whole lump sum benefit and you would be able to redeem all or part of your mortgage, or use the funds for the purpose of your choice.

Illnesses covered differ from policy to policy. Pre-existing conditions will not be covered and may affect the premium.

Rainbow Mortgage Services can offer a broad range of insurance products from a panel of providers. Costs vary depending on amount to be insured, post code area, excess and the policy holders previous claims experience.

All of the protection policies named above have benefits and drawbacks.  Drawbacks can include exclusions and limits to the amount of cover.  We will discuss these with you before we make a recommendation.

If you would like a quote for cover on any of the products mentioned please contact us on 01603 305357 where we can arrange your cover over the phone.

back to top

site map