FTB, life insurance, payment protection, health insurance

pault123

Hi!

Im a first time buyer. Having seen a local mortgage adviser he suggests budgeting up to £70 a month for payment protection, life insurance (me and my partner are buying joint) and health cover so if one of us becomes ill suport will be at hand with the mortgage.

1. Does £70 seem a little excessive for all this?
2. How much should I get life insurance for (eg. looking at buying a £125000 property, should I be getting qoutes for £125k or £250k as we need £125k cover each as it is me and my girlfriend)
3. Do you personally have all three life insurance, health cover and payment protection?
4. Any reccomendations of good companies?

Sorry for sounding a little green to all this, its a total minefield to me. Any help would be greatly apprieciated.

Cheers Paul

dunstonh

1. Does £70 seem a little excessive for all this?

Depends on what is being covered. There are addons and extras with the various protection policies. These can obviously affect the price along with age and term.

2. How much should I get life insurance for (eg. looking at buying a £125000 property, should I be getting qoutes for £125k or £250k as we need £125k cover each as it is me and my girlfriend)

£125k joint life first death would be the amount for the mortgage. If one of you doenst earn a lot, you may want a little more additional cover for the higher earner. i.e. if the lower earner wouldnt be able to afford to live in the house in the event of the higher earner's death.

3. Do you personally have all three life insurance, health cover and payment protection?

Everyone is different. Some will, some will not. You need to clarify what you mean by health cover. Payment protection usually includes accident, sickness and unemployment. Is this extra health cover income protection after the payment protection expires or is it private medical insurance (which is the closest match for health cover).

4. Any reccomendations of good companies?

Usually, the company that is cheapest for life cover, will not be for payment protection etc. If it is an "all on one" policy/provider, then chances are you are paying more then you would need to. Most of the current insurers left in the marketplace are fine. Just avoid the banks and building societies own insurers.