Employer Health Cover vs Personal Insurance: Why Homebuyers in the UK Need More Protection

Many UK employees benefit from employer health coverage, but is it enough when you have a mortgage? While workplace benefits like death in service cover provide some financial security, they often fall short of fully protecting your home and loved ones. This guide explores the key differences between employer vs personal insurance and why homebuyers should consider additional coverage.

What Is Employer Health Cover?

Employer health cover, including death in service benefits, provides financial support to employees and their families in case of illness, injury, or death. Typically, death in service pays out a lump sum of around 2-4 times your annual salary to your beneficiaries if you pass away while employed by the company.

While this sounds like a great benefit, there are critical gaps that could leave homeowners financially vulnerable.

Why Employer Death in Service Cover Is Not Enough for Homebuyers

If you have a mortgage, relying solely on death in service cover might not provide sufficient protection. Here’s why:

• Limited Coverage: The payout is based on salary, which may not cover the full mortgage balance.

• Loss of Employment Means Loss of Cover: If you change jobs, get made redundant, or retire, your protection disappears.

• Not Tailored to Mortgage Needs: Unlike personal life insurance, employer schemes are not designed to clear mortgage debt specifically.

• No Income Protection: Employer policies usually don’t cover lost income due to long-term illness or disability.

The Benefits of Personal Insurance

Personal insurance provides long-term security, ensuring your home and loved ones are fully protected. Here’s why personal insurance is a better fit for homebuyers:

• Customizable Coverage: Choose the level of cover that matches your mortgage and financial needs.

• Portability: Your policy stays with you, even if you switch jobs.

• Additional Protection: Includes critical illness cover, income protection, and mortgage life insurance.

• Guaranteed Payout: Ensures that mortgage payments are covered if you pass away or can’t work due to illness.

Explore our Insurances page to find the best protection options for homeowners.

Choosing the Right Policy

When comparing employer vs personal insurance, consider the following:

1. Assess Your Needs: Calculate how much cover is required to pay off your mortgage and protect your family.

2. Compare Policies: Look at the benefits, exclusions, and costs of different options.

3. Get Expert Advice: Our team at Possible Mortgages can help you choose the best policy tailored to your needs.

Final Thoughts on Employer vs Personal Insurance

While employer benefits like death in service cover provide a helpful safety net, they are rarely sufficient for mortgage holders. Investing in personal insurance ensures full protection, financial stability, and peace of mind. Ready to secure your home’s future? Contact us today for expert guidance on finding the right insurance policy.

As with all insurance policies, conditions and exclusions will apply. The cost of this insurance depends on several factors, such as your age, where you live and your occupation. As a result, the cost you will pay is based on your own circumstances.