I need help with Total protetion enquiry asap

stan1ey

My Wife and I are in the process of taking out our first morgage with the HBOS they have quoted near enough £100 PM for a total protection policy. This sounds a hell of a lot to be paying can anyone please advise me if this is the going rate? can I get this cheaper anywhere else and if so where? This is all very new to me so any advise will be gratefully accepted. We have a meeting with the bank on Wednesday due to us telling her we wanted to canel the above, but I would like to go more informed so that i can tell her why we are going to take this out elsewhere.
Thankyou:beer:

Wakey2008

What exactly are you getting in this "Total Protection Policy"?

Whether it is cost effective or not will depend on what it is, what it does, how long it runs for, what it's value is, who it covers and the personal details of yourselves (age, sex, smoker etc).

stan1ey

Wakey2008 wrote: »

What exactly are you getting in this "Total Protection Policy"?

Whether it is cost effective or not will depend on what it is, what it does, how long it runs for, what it's value is, who it covers and the personal details of yourselves (age, sex, smoker etc).

It covers Disability,unemployment,critical illness,childrens critical illness(free) and life cover
Yes we are smokers
runs for 25 yrs
covers myself wife and child
I know it sounds to cover a lot but we cant afford the £100 on top of the morgage
Thankyou

dunstonh

HSBC tied advice will be expensive. An IFA would be able to get around 20-30% cheaper. DIY probably 30-40% cheaper.

I know it sounds to cover a lot but we cant afford the £100 on top of the morgage

You should try paying a mortgage if you cant work.

stan1ey

dunstonh wrote: »

HSBC tied advice will be expensive. An IFA would be able to get around 20-30% cheaper. DIY probably 30-40% cheaper.



You should try paying a mortgage if you cant work.

Thankyou for that advise yes we want to take protetion out because I know it is going to be hard to pay if for any reason I /we cannot work could you please explain what an IFA is and where to get this
Once again thankyou

Wakey2008

stan1ey wrote: »

It covers Disability,unemployment,critical illness,childrens critical illness(free) and life cover
Yes we are smokers
runs for 25 yrs
covers myself wife and child
I know it sounds to cover a lot but we cant afford the £100 on top of the morgage
Thankyou

Although you probably have a need for all of this it wouldn't be advisable to take out a policy you cannot afford.

This said you should ensure you have some level of cover.

The best thing to do is discuss what budget you have protection and allow the adviser to work backwards until you find a happy medium. This is far from the ideal situatuon but it will mean that you are left with some degree of security without having to live on the bread line.

stan1ey

We dont want to go to an Independant FA we would like to do this our selves

dimbo61

You have to look at the whole package !
Does this give you life assurance to cover the mortgage in the event of death of either yourself or other half.
Does your employer provide death in service benefit ?
How long would you be paid sick pay by your employer? Six months or longer ?
Do you have 3/6 months of emergency funds ?
Do you do a hard physical job or sit at a deck all day ?
Both smokers ( stop now !) and do you have any existing medical conditions.
Are you self employed or on a contract
So many things to take into account
Shop round for this type of cover and go see an IFA

Wakey2008

In that case you need to assess what your protection priorities are and look at covering those in the most suitable way. It won't be easy.

stan1ey

I think our priorities are that we would just like to be covered for short term sickness we are both in our early 30s with no underlying health problems and just feel we are being presurised to take out more than we need

dunstonh

Most people cannot afford to cover themselves for everything. You have to play the odds a bit and protect the things that are important to you. So some compromise within budget is to be expected.

However, one concern I do have on your posts is that mortgages have never been cheaper. If £100pm is not affordable now, then what are you going to go when mortgage payments go up again to being 2, 3,5 or even 5 times more than they are currently?