“Home owners could cope with rate rise, says Bank” is what the BBC is reporting on today. Do you think you could cope with a rise in interest rates if you have a mortgage to pay?
The current interest rate is at a historic low, so much so that the Bank predicts that if interest rates rose by 2%, only 4% of mortgage holders would need to take action to counter this. But wait for the catch…
…the calculation assumes that there will be a 10% rise in household incomes.
Ed Monk from ThisIsMoney looks at this in a different way: the figures show that this rise in interest rates could make as many as 660,000 UK families vulnerable, and that those aged between 25 and 44 would be worst affected.
Despite the current interest rates being at a historic low, could you cope with a rising interest rate if you didn’t get that 10% rise in household incomes?
What if something happened to cut your income severely? Would you fall into a financially vulnerable state?
There are ways that you can protect yourself from ever falling into this situation. Because with or without the rise in interest, if your income fails you’ll be left vulnerable, unstable, and unsure about the future.
These insurance policies will pay out a sum of money in the event of you becoming ill to the point where you are unable to work or bring in an income to support yourself with. This is the safety net that will keep you going when you need support the most. Go here for Critical Illness Cover and Terminal Illness Cover.
Income Protection Insurance is designed to pay you regular payments to support you when you lose earnings due to an illness or injury. The payments will stop paying when you are able to work again or the policy runs out. Either way, this will help you get back on your feet after losing the income you rely on.
By insuring yourself against the disasters in life, you can be sure that no matter what happens to the interest rate or your income; you’ll be safe from the worst.
Call Active Brokers for advice on the right type of insurance for you, or request a call back at a time that is best for you here.