Protecting Renters
With Ireland’s current housing shortage, more families find themselves in rented accommodation than ever before. Unfortunately, renting often means less financial security.
When people take out a mortgage, they work with a financial adviser to take out mortgage protection as a requirement of drawing down their loan -this obviously is not a requirement for families when renting.
Banks know that the unexpected does happen and have implemented compulsory life insurance policies for all borrowers, called mortgage protection. Effecting mortgage protection is often the first financial advice people receive and at minimum they insure their mortgage against the unexpected -often times also securing income protection or illness cover.
With average rent prices as high or higher than average mortgage payments, the need for ‘rental protection’ is significant.
Unlike homeowners, renters are not required to protect their outgoings, so what happens to a family that relies on two incomes and suddenly has one? How will their family continue ‘as normal’ without protection in place?
Homeowners have the peace of mind that at the very least, their mortgage will be paid if they or their partner pass suddenly, ideally, all families would have the financial security life insurance brings.
I talk about how to estimate the amount of life cover you might need in another blog post (here) -simply include your rent payment in your monthly outgoings and work out how much cover your budget allows for. If you can’t afford an ‘ideal’ amount of cover, when the unexpected occurs, having some cover in place is better than none.
Take a few minutes and create a plan; with digital applications and policies starting at €10 per month, the biggest hurdle is starting the conversation.
Queries? Contact me anytime.
Rachel O’ Shea, Senior Consultant & Protection Manager