Advice regarding insurance

daisyH_2

Both myself and partner (not married) are self-employed. Neither in manual jobs. We've got a young daughter and a mortgage, and we're pretty much reliant on joint income to pay the bills. At the moment we've got mortgage insurance but no life assurance or illness cover (gulp). I'm trying to figure out the best insurances for our situation, but struggling to wade through all the different types. Can anyone give some suggestions for what to go for? Or am I best forking out for a financial advisor? I was thinking life assurance plus some type of sickness cover but would that be PHI?

Any help welcomed
Daisy

rossbenn

Best to see an IFA. PHI is the old name for what is now called Income Protection. If you are self employed and you do fall ill your income will stop and the bills will not get paid. Look at it this way, if you are say 25 and you will work to age 65 and earn say £30,000 p.a. your earning potential is a min of £1,200,000 without increases. If you had a painting worth that amount would you insure it?

daisyH_2

Thanks for that. How should I go about finding a good IFA? I've used a Bradford and Bingley chap in the past, which was free but I did end up feeling steamrollered into some policies that I didn't really feel fitted for various reasons and haven't been back since, so am a little nervous about it, especially when my partner is very cynical about these things and therefore not terribly supportive. There's not much spare cash around at the moment, so I really can't afford to pay someone much....

MortgageMamma

Find someone who is fee;s free who will advise you on it. You need an advisor not a salesperson, sounds like the chap and Bradford and Bingley either bullied or frightened you into buying the policies