Life cover, critical illness and other insurance
Sammy5
Posts: 62 Forumite
Hi,
Apologies if it's not right to start a new thread on this, I'm quite new to the forum. I'm in the process of buying a property and have no idea what I'm doing... but I know that if I do buy it, I need to start putting in place some insurance, in case the worst should happen. Initially I will be living there alone, although I hope my girlfriend will move in sometime next year and pay her way (although I'll be the only one on the mortgage I expect, as I've gone for 2-year fixed rate and can change that nearer the end of that term).
I'm a bit worried about which sort of insurance I need. As mentioned previously I'll be there alone to begin with, so I need to be sure that I'll be okay if something bad happens. I've asked at work if we get any sort of cover (my Aunt suggested we might have something called 'death in service'?). We get paid for up to 13 weeks if we can't work, I know that much. I've agreed (although the policy wouldn't start until completion) on advice from a financial consultant to spend £43.31 a month on integrated life & critical illness cover from Aviva. Does that sound a lot? I'm worried that I'd be paying too much and could get much better deals! I know one type of cover wasn't available to me (can't remember which), as my mortgage is due to run until I'm 68.
Today I got a call from the building insurance branch of the estate agent (apparently) and they gave me a quote for that... it also sounded on the high side. I'm guessing I could get better deals somewhere, but I'm worried about getting stuff wrong!
Any help or advice would be much appreciated
Many thanks,
Sam
Apologies if it's not right to start a new thread on this, I'm quite new to the forum. I'm in the process of buying a property and have no idea what I'm doing... but I know that if I do buy it, I need to start putting in place some insurance, in case the worst should happen. Initially I will be living there alone, although I hope my girlfriend will move in sometime next year and pay her way (although I'll be the only one on the mortgage I expect, as I've gone for 2-year fixed rate and can change that nearer the end of that term).
I'm a bit worried about which sort of insurance I need. As mentioned previously I'll be there alone to begin with, so I need to be sure that I'll be okay if something bad happens. I've asked at work if we get any sort of cover (my Aunt suggested we might have something called 'death in service'?). We get paid for up to 13 weeks if we can't work, I know that much. I've agreed (although the policy wouldn't start until completion) on advice from a financial consultant to spend £43.31 a month on integrated life & critical illness cover from Aviva. Does that sound a lot? I'm worried that I'd be paying too much and could get much better deals! I know one type of cover wasn't available to me (can't remember which), as my mortgage is due to run until I'm 68.
Today I got a call from the building insurance branch of the estate agent (apparently) and they gave me a quote for that... it also sounded on the high side. I'm guessing I could get better deals somewhere, but I'm worried about getting stuff wrong!
Any help or advice would be much appreciated
Many thanks,
Sam
0
Comments
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People associated with your bank/ mortgage provider and estate agents are unlikely to be independent and as such almost never have the best products/ prices.
For your protection needs (life, CI, PHI etc) then either go to a Protection Broker or IFA for professional advice as they can assess your needs based on your current situation and your plans. You are doing correct to ensure you understand your work benefits and the IFA will factor these in to their recommendation depending on your work plans too
Home insurance is fairly straight forward and really can be done self service using the internet (eg Confused.com). Just make sure that for Buildings you declare the rebuild value not the sale price - the survey should have identified this for you and for Contents the total sum insured must be for EVERYTHING you own on a buying it new today value including all your socks/ pants/ cutlery/ bottles of vodka etc and not just the big ticket items that you are actually bothered about.0 -
How old are you and are you in good health?
Your existing cover sounds high but will be dependent upon a number of factor. As per the above post you should use a broker.Thinking critically since 1996....0 -
Thanks, I will contact an IFA and see if they can help. Money isn't exactly flowing at the moment (I'm having to borrow from my Dad to pay the 'sale by tender' fee to the estate agent as it is), but if it saves me money each month then I'm sure it'd be worth it.
Regarding age/health - I'm 34 and in excellent health. I've actually owned two properties before and we went through an IFA at least the second time (if not the first as well), but then we were splitting costs back then and it was all a lot easier. This time I've had to go it alone and get a place while I still can. Back to square one, age 34!0
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