Accidents, illnesses and death can result in serious financial difficulties which impact the affordability of your living costs. You can prevent this from happening by taking out risk insurance coverage.
1. Identify risks
In the event of death or inability to work, your mortgage may become unserviceable. In the worst case scenario, this could mean that you are forced to sell your home.
The risk of this happening is particularly high if:
- part of the property has been financed through an early withdrawal from your pension scheme
- the property's loan-to-value ratio exceeds the total of your first mortgage (67% of the real estate's value)
- one person generates the lion's share of the household's income
In cases such as these, it makes sense to take out a risk insurance policy which covers a certain proportion of the mortgage volume. UBS offers insurance solutions tailored to your needs.
2. Hedge risks
By taking out risk insurance under the UBS Mortgage with insurance cover scheme, you can hedge the financial risks posed by incapacity to work or death. This means you can still afford to finance your own home despite your drop in income or that the mortgage will remain serviceable for your surviving dependents in the event that you pass away.
- Insurance coverage in the event of incapacity to work: provides protection against loss of income resulting from accident or illness in the form of an annuity
- Insurance coverage in the event of death: guarantees financial protection for your surviving dependents
We would be delighted to provide you with an advisory consultation to inform you how exactly the insurance schemes work and to establish which type of insurance best suits your needs.