Emma Vaughan , Head of Protection and Health Solutions , Simplybiz

Buying a home is one of the most significant milestones in life . For many young people , securing a mortgage represents stability , independence and sometimes the fulfilment of a long-held dream ! However , as thrilling as homeownership can be , it also brings a new set of responsibilities and challenges , many of which young homeowners might not be fully prepared for . Among the most critical of these responsibilities are financial protection and mental health , two aspects that , if neglected , can turn the dream of homeownership into a nightmare .

The concept of financial protection may seem abstract or unnecessary to some young people , especially when they ’ re already grappling with the large financial commitment of a mortgage . However , the reality is that life is unpredictable . Job loss , illness or unexpected expenses can quickly derail even the most carefully planned budgets .

FOR HOMEOWNERS , LIFE INSURANCE IS A KEY COMPONENT OF FINANCIAL PROTECTION .

It ensures that if something happens to you , your loved ones are not left struggling with mortgage payments on their own .

Many young people underestimate the importance of life insurance , assuming it ’ s something they can think about later in life . However , securing life insurance at a younger age is typically more affordable , and it provides peace of mind that your home is protected no matter what .

But what if you have no dependents and the only person you need to consider is yourself ? Income protection insurance is particularly relevant in today ’ s uncertain job market , providing a safety net if you ’ re unable to work due to illness or injury . For young homeowners , losing a steady income can quickly lead to financial distress . Income protection insurance ensures that you can continue to make your mortgage payments even if you ’ re unable to work for an extended period .

While the financial aspects of protection are vital , it ’ s equally important to consider the impact of homeownership on mental health . The responsibilities of owning a home can be overwhelming , especially for young people who may be navigating this complex process for the first time .

Managing a mortgage , along with other living expenses , can be a source of significant stress . For many young homeowners , the fear of not being able to keep up with mortgage payments is a constant worry . This stress can lead to anxiety , sleep problems and even depression if not managed properly . It ’ s essential for young people to understand that it ’ s okay to seek help if they ’ re feeling overwhelmed . Financial counselling and mental health support are invaluable resources that can help navigate these challenges , and this support is included with most policies that customers can access through an adviser .

For young professionals , balancing a career with the responsibilities of homeownership , hobbies , and a social life can be tricky .

6 | PROTECTION ADVISER | AUTUMN 2024 |