What kind of insurance do I need - Mortgage agreed?

Fire_Fox

VIGILANT22 wrote: »

keith969 If you become unable to work and are not in receipt of your income with have no savings, how will you pay your mortgage?

Keith didn't say he had no savings, and SMI will pay the mortgage interest after the first three months.

Doshwaster

Emmzi wrote: »

do you have any dependents?

if not
- home and contents
- possibley *some* critical illness cover as you are a sole income generator
- maybe redndnacy cover, only you will know the likely risk of that
- no need for life insurance

I'm single with no dependants and just taken out my first mortgage. Arranging that was simple compared to the insurance
- home: condition of the mortgage
- contents: never had it before but planning on getting nice things now, so a good idea
critical illness & income protection: yes. Most important thing to me.
redundancy: no - it's ludicrously expensive.
Life insurance: no - if I drop dead the bank gets the house. What do I care?

Gambit

Fire_Fox wrote: »

Think carefully about the critical illness and payment protection - what would happen if you fell ill or got made redundant?

With this in mind I'm thinking that instead of paying out for 'Critical Cover' I could make that payment to a savings account or ISA and not touch it. Then if anything ever does happen we have a pot of money to fall back on. I know it wouldnt help if anything happened in the next few years but my thinking is that if we did that for say 10 years and nothing happen we would at least still have that money unlike an insurance policy where you wouldnt ever see it again. I know it's not the same but I've done similar health insurance policies before and never had to claim which meant that money was lost.

FYI - Also we have no dependants and always have family to help us out if we really get into trouble. Thinking about it, also means we can help our family if they ever have any major financial problems too!

Has anyone else decided to do something like this?

keith969

VIGILANT22 wrote: »

keith969 If you become unable to work and are not in receipt of your income with have no savings, how will you pay your mortgage?

Ah but I do have savings.

VIGILANT22

Fire_Fox wrote: »

Keith didn't say he had no savings, and SMI will pay the mortgage interest after the first three months.

and I didnt say he had no savings either....the question was "if"....also be careful about saying SMI will pay etc!...like all benefits..."you may be eligible"

Doshwaster

Gambit wrote: »

Has anyone else decided to do something like this?

IMO, "Self Insurance" is the best way to cover against redundancy. The policies are very expensive and very difficult to claim against. Much better to aim to have at least 3 months salary saved away in an ISA as a safety net.

Income Protection is different as that covers you when you cannot work due to long term illness.

VIGILANT22

Doshwaster wrote: »

IMO, "Self Insurance" is the best way to cover against redundancy. The policies are very expensive and very difficult to claim against.QUOTE]

In this current climate where many people who have been made redundant and are claiming may disagree with you....

Gambit

Doshwaster wrote: »

IMO, "Self Insurance" is the best way to cover against redundancy. The policies are very expensive and very difficult to claim against. Much better to aim to have at least 3 months salary saved away in an ISA as a safety net.

Income Protection is different as that covers you when you cannot work due to long term illness.

Yeah true. Added to that fact that both my girlfriend and I work in the public sector so redundancy is slightly less likely *touch wood*