STEP 2
Protect Your Debt
Make sure your mortgage, loans and other major debts do not become a burden for the people you care about if the unexpected happens.
What is Step 2?
Protect your major debts
Step 2 means looking at the debts and financial commitments that would still exist if something happened to you. This may include your mortgage, personal loans, business loans, car finance or other borrowing.
Why it matters
If your income stopped, your health changed or you passed away, your debts may not simply disappear.
Having the right protection in place can help reduce the financial pressure on your household or loved ones.
What should you review?
Start by looking at your biggest commitments first.
For many people, that will be their mortgage. For others, it may include loans, business borrowing, joint debts or family commitments.
The payoff
Protecting your debt gives your financial plan a stronger foundation. It means the people you care about are less likely to face difficult financial decisions at an already difficult time.
How to protect your debt
Start With What You Owe
Make a clear list of your mortgage, loans, credit cards, finance agreements, business debts, guarantees and any other major commitments.
Understand Who Could Be Affected
Consider who would be impacted if a debt remained unpaid, such as your partner, children, dependants, co-borrower, family members or business partners.
Review Your Mortgage Protection
If you already have mortgage protection, check whether it still reflects your current mortgage, lender, term and personal circumstances.
Think About Serious Illness Cover
Serious illness cover may be worth considering if illness could affect your ability to manage debt, household costs or financial commitments.
Review Business Debts and Guarantees
If you are self-employed or a business owner, review any business borrowing, personal guarantees or commitments linked to the business.
No-fee financial advice.
30+ Years of Experience.
Long-term support.
Clear guidance.
Strengthen your debt protection
Review your mortgage protection
Check whether your policy still reflects your current mortgage balance, term and lender arrangements.
Check old policies
You may already have cover in place from a previous mortgage, job, lender or financial review. Make sure you understand what it covers and whether it is still suitable.
Review joint borrowing
If you share a mortgage or loan with someone else, consider how the debt would be managed if one person passed away or could no longer contribute.
Look beyond the mortgage
Your mortgage may be the biggest debt, but it may not be the only financial commitment that matters.
Consider your family’s wider needs
Paying off debt is important, but your family may also need money for living costs, childcare, education or future plans.
Keep protection under review
Review your cover when your mortgage, income, family or business circumstances change.
Avoid cancelling cover without advice
Reducing monthly costs can be tempting, but cancelling protection without understanding the impact may leave a serious gap.
Speak before taking on new borrowing
If you are considering a mortgage top-up, loan or business borrowing, it can be useful to review protection at the same time.
Not sure what financial step to take next?
Hidden
Do Covermore charge a fee for financial advice?
Covermore provides no-fee financial advice consultations. We will explain how the process works clearly before you make any decision.
Do I need to know what service I need before contacting you?
No. Many clients come to us because they are not sure what they need. We can help you understand whether your next step relates to your mortgage, protection, pension, savings, investments or wider financial planning.
Can Covermore help if I already have policies or pensions in place?
Yes. We can review what you already have and help you understand whether it still suits your life, goals and current circumstances.
Do you only work with clients in Dublin?
Covermore is based in Dublin, but we work with clients nationwide.
Can you help business owners and company directors?
Yes. We work with business owners, sole traders, partnerships and company directors on pensions, protection, savings, investment planning and broader financial advice.