mortgage payment protection or income protection

mahilj

which would be better and provide the best cover

mortgage protection and life insurance

or

income protection and life insurance

thanks in advance

OshayAway

'Proper' income protection, that is PHI (permantent health insurance) is far more comprehensive than MPPI (mortgage payment protection also known as A/S or Accident & Sickness cover).

It has far fewer exclusions, is underwriten at applicaiton and is a long term policy which can have guaranteed premiums (which wont change throughout the term).

marklv

PHI only covers loss of employment through health issues, not redundancy or dismissal.

mahilj

I am a first time buyer and want cover for my mortgage the bank who are offering the mortgage have quoted £145 for their total cover Sickness and Accident, Life and Critical Illness cover. Is this all required or are there better alternatives

OshayAway

True, so PHI & 'U' (unemployment) part of ASU MPPI is better than ASU if you are looking to pretect against unemployment / redundancy.

dunstonh

Is this all required or are there better alternatives

banks are the most expensive distribution channel and their products are often lower quality. So, its fair to say that there will be better and there will be cheaper.

OshayAway

mahilj wrote: »

I am a first time buyer and want cover for my mortgage the bank who are offering the mortgage have quoted £145 for their total cover Sickness and Accident, Life and Critical Illness cover. Is this all required or are there better alternatives

Banks are the most expensive distribution channel for insurance. If you have a need for the above, there will certainly be a more cost effective and likely more comprehensive way to arrange it.

magpiecottage

marklv wrote: »

PHI only covers loss of employment through health issues, not redundancy or dismissal.

But it will cover you if you are self-employed and, if necessary, can cover you right up to when you planned to retire. That is why it is Permanent Health Insurance

ASU and PPI provide cover for one or maybe two years. It is temporary cover intended as a stop gap.