Mortgage protection with Life Cover

julliff

Hi,

I have been overhauling my finances, and have looked closely at my insurance policies.

At the moment I have two decreasing term LA policies to cover my mortgage with monthly premiums of £8.80 & 6.60.
I also have an Income Protection Policy which will pay £259 per month until age 60 on payout, and the cost is £61.50 per month.

Thinking about this carefully, I have decided that what I really want is a policy which would pay out a lump sum to cover my
outstanding mortgage in the event I couldn't work through accident or critical illness, or on death.

Looking around I have seen policies like this for about £34.00 - which is obviously a lot cheaper than the sum of the policies
I already have. Also, £259 per month is not going to get me very far!

Does this seem like a sensible idea? (Crazy as it sounds, I am not too comcerned about redundancy cover).

Are there any other considerations that I Should be making?

Many thanks in advance for any advice or thoughts!

Wutang_2

not sure why you would have 2 life insurance policies but seeing as you have - and they cover the mortgage - then you have the lump sum cover on death that you require...

If you arranged the income protection through an IFA then this should be the best cover for you, although there is never any harm in reviewing (again you would need to speak to an IFA).

Random figures of £34 mean nothing to you as each policy should be tailored to your own circumstances e.g. if you see life insurance advertised, the insurer will (for example) base it on a 28 year old non smoker as that is their target market whereas you may have different circumstances.

Its a good idea to review - but take advice

julliff

Thanks for your reply.

The reason there are two life policies is because I had a repayent portion and an endowment portion to my mortgage. I then switched from the Endowment to make both parets repayment, and I needed to Life Cover for the switched bit.

The £34 premium I quoted was based on a quote I got online. It was based on my age and details, and was based on a decreasing amount of cover, in line with the outstanding mortgage that I have.

I did indeed get the IP policy through a financial advisor at Nationwide some years ago. However, as I say, £256 per month is not really going to be of much use.

I would just like to know that my mortgage will be paid off, in the event that I couldn't work. I have 9 1/2 years left on mortgage.

julliff

Does anyone kow hpw to get a good ifa? I mean are there professional bodies to which they are affiliated?

Thanks again

dunstonh

To be an IFA you have to have a minimum standard of qualifications and be FSA authorised. www.unbiased.co.uk covers about 99% of IFAs. You can search by postcode but make sure you untick the option to show only paying IFAs. i.e. those that pay unbiased to appear to those that leave the option ticked and get a bigger layout in list.