what insurances do i really need ????

joannemc3

hello all ,
quick questions i currently have buildings , contents insurance , life insurance and critical illness insurance , just recently my partner has had to have time off from work and is still off , we rang mortgage company thinking that we had insurance to cover payments but were told we did not ?????? honestly thought we did , we changed our mortgage 2 years ago from natwest to alliance and leicster , and im almost certain that we had morgage payment protection with them ......anyway probably our own fault .. but my partner doesnt get any sick pay ect ....mortgage company wouldnt even let us take payment break just said we could pay the intrest only but is almost the full mortgage amount so not really worth doing that might as well pay full lot !!!!!! any advice as to what insurnce ect we should have would be great .

Andy_L

As you've got a mortgage the only one you NEED is buildings insurance as it's a condition of you mortgage.

but my partner doesnt get any sick pay

if your partner is an employee they are probably entitled to statuatory sick pay
http://www.dwp.gov.uk/lifeevent/benefits/statutory_sick_pay.asp

Andy

MortgageMamma

what made you believe you had mortgage payment protection -did you fill out application forms for it? If you did and its not been put in force you may have a claim

joannemc3

hi , when we got our first mortgage with the natwest , we went through a finacial advisor , we did this again when we changed our mortgage , im gonna check my files and see if we deffo had it when we were with the natwest

OshayAway

Andy_L wrote:

As you've got a mortgage the only one you NEED is buildings insurance as it's a condition of you mortgage.

I would be more inclined to say that buildings insurance is the only one your mortgage company needs you to have because it protects their interests. The lender wont tell you that you need life, critical illness cover or ASU / mortgage payment protection because it wont effect them if you loose your home.

So your needs depend on your circumstances. The best way of figuring it out is to first consider your incomings and outgoings, then what would be the effect on those figures in the event that:
a) You or your partner dies.
b) You or your partner is made redundant.
c) You or your partner is unable to work due to illness or accident for the short to medium term.
d) You or your partner is unable to work for the long term or ever again.

The good news is that there are lots of products to satisfy these needs if you can find a company that has access to a range of insurers and policies that will explain all the available options without pressuring you into a decision. Now that the industry is regulated, you will find that an IFA or protection specialist will make a recommendation after having considered you demands and needs and they will have to stand by that to the point that they will have to state in writing if you have not taken up the entire recommendation, in order to protect themselves.

The alternative is to go down the non-advised route so that you would be receiving product information only without a specific recommendation. Unfortunately, often the quality of the information is not as comprehensive and you won’t have any ‘come-back’ if it turns out the cover you choose from the options presented doesn’t cover you as well as you hoped. This isn’t always the case though if you are fortunate enough to find a broker that is able to break down the options and product features in a way that enables you to make an informed choice.

Hope that helps a little, good luck!