Insurance/Assurance confusion

Little_Miss_Confused

To cut a long story short I am splitting from my husband and taking over the mortgage on the house. The mortgage is sorted but I am confused as to what insurance and assurance I need. My husband says to start again but where to start? I have looked at the info on this site and I seem to need buildings and contents, MPPI and Mortgage Decreasing Term assurance. Then I read a money column in the newspaper and it suggested payment protection policies are a waste of time and you should buy life insurance and income protection policies instead. Any advice greatly received.

dunstonh

I have looked at the info on this site and I seem to need buildings and contents, MPPI and Mortgage Decreasing Term assurance.

correct

Then I read a money column in the newspaper and it suggested payment protection policies are a waste of time and you should buy life insurance and income protection policies instead.

Just ask anyone who has claimed on an ASU if they felt it was a waste of time.

jasonking

You'll definately need buildings and contents insurance, but make sure you dont already have cover through your mortgage lender.

If you have dependants then you should consider life insurance, if you have a repayment mortgage then decreasing term assurance is usually simplest and cheapest option. You might want to speak to the provider of your current joint policy as they may agree to simply split your existing cover in half, however you should also compare this to the cost of a brand new plan.

Income Protection policies are generally accepted as better quality that payment protection policies, however they are more complicated. You could also consider Critical illness cover.

I think you should take the trouble to speak to a specialist adviser as your situation is not simple and covering all options could prove costly so you will have to decide on priorities. If your husband is paying you maintenance then you should also think about insuring his life in case he dies as the maintenance payments would then stop. Your solicitor should have mentioned this to you.