Mortgage insurances confusion

njh82

Hi

I'm an ftb and getting very confused about what mortgage protections are worth getting and how much they should cost.

My mortgage broker is suggesting i get Mortgage protection, critical illness and life cover. He also suggest income protection.

I am freelance so I am fairly sure any unemployment cover won't help me so decided to just look at life and mortgage protection for accident and illness...is this enough?

I looked on here and used the online Cavendish and iprotect and the quotes came in pretty cheap- about £8 for mortgage protections and £6 for life.my broker was quoting £30...

any help greatly appreciated!

david29dpo

Your broker may be after his big fat commission. Life insurance is worth the small monthly price. Only you can decide if any others are worth it.

MrGreenNewForest

From personal experience I would include critical illness cover. I had forgotten I had it but when I needed it the insurance paid out!

poppy_f1

it depends on your financial need, eg i didnt bother taking out any insurances - as a single female with no dependants i dont need life cover but decided against critical illness as my mortgage is small and worst case scenario my mum would help me out income protection well i have enough savings to cover approx 8 months out of work and sickness - my work has apretty good scheme

you need to look at the figures given as look closely at what you are covered for before going ahead

tiggerjj

I dont have any cover, as a single female with no dependents i dont need life cover and cant get the other types as my job is considered too hazardous!!!!

And I'm not worrying about it, I just make sure I have a good rainy day fund stored away.

When i bought my house the mortgage advisors wanted to sell me everything as well. You need to carefully consider what you feel you need, and make sure you understand what each one does and doesnot do before commiting to any of them

njh82

I guess I think I should have life cover as I am buying with my other half and woudln't want him left paying the mortgage or to lose the house.

The critical illness I am still unsure about- the mortgage brokers sent such a rude letter saying 'we advised xxx you have chosen to decline and want to warn you about xyz'. However it says ont his site that usually they aren't worth the paper hey are written on?

he also suggested we wouldn't get any benefits if I tried to sign on as my partner living int he house has a full time job, which is a worry.However, I have a rainy day fund as I need to being freelance as you never know when you will find yourself unemployed.

If I broke a leg and couldn't work I wouldn't get sick pay so I guess I need some kind of accident and sickness cover... My main worry is being scammed as I am clear what the quotes state I will get in event of death or accident/injury but it seems quite cheap at £6 a month to cover you .

SandC

Seriously, don't worry about anything your broker says or writes with regards to insurance. Take your time and do your own research before you decide - except for buildings and contents you don't have to have everything in place for when you move in, it can be done at any time. I would never go with the insurance recommended by the broker even if I did decide it was necessary.

I have only just taken out PHI (similar to critical illness but pays out a fixed monthly amount for as long as you are sick, after x weeks or months), I bought my house 15 years ago. The only insurances I have ever had up to now have been buildings and contents as my employers have all had life insurance cover which would have paid off the mortgage had the worst happened. Redundancy cover, well my mortgage was never astronomical anyway and could have been covered by any old min wage job.

You should weigh up the risks before deciding. Although I would say that the longer you go without certain insurances the less likely you will find the money to justify them once you are a homeowner if you see what I mean - there is always something else you need the money for. So if you decide that any of them are of real importance to you and yours then I would suggest sorting it sooner rather than later as then you will just count it as another household expense.

betmunch

If your not sure what you need talk it over with an expert simple as that.

That letter your recieved was probably the letter of suitablility, its good practice to send one out when something is agreed and not meant to be rude. It is also used for !!!!! covering. If you were to get a condition that would have resulted in your policy paying out, but you never took the policy the broker would be able to prove he told you to have it soif you get repossessed its not his fault.

betmunch

SandC wrote: »

except for buildings and contents you don't have to have everything in place for when you move in

Its just Buildings Insurance you need to have in place before moving in, Contents is up to you.