Recommended insurance for mortgage

parrish_2

Hello everyone,

I've just got on the property ladder and am slightly confused by all of the insurance policies on offer.

I'm 30, single and have no dependents. My sick pay covers 6 months full pay and 6 months half pay.

After a long and confusing talk with the mortgage broker I'm confused as to what to take out. I know the minimum I need is buildings insurance, but it's the others I'm not sure about.

I will be taking out buildings and contents, and have already found a quote £200 less than my broker recommended (probably lining his pocket).

Now should I take out life assurance or life assurance with critical illness or just critical illness? Quotes so far have been around £26pm for decreasing life assurance with critical illness vs £45pm for level term.

Do I really need income/unemployment protection? My broker recommended it but in the last 10 years I've had half a day off sick and I don't think that redundancy/unemployment will be an issue.

I know that insurance is very much a minefield and like staring in to a crystal ball, but can anyone add their two pence worth just to help me make up my mind?

dunstonh

I will be taking out buildings and contents, and have already found a quote £200 less than my broker recommended (probably lining his pocket).

Thats a massive difference. Typically, my mortgage adviser finds there is little or no difference between the policies he offers and those available on quote sites. However, if your mortgage broker isnt independent and only offers a limited or single provider panel then that may explain it.

You should make sure you are comparing like for like.

Now should I take out life assurance or life assurance with critical illness or just critical illness?

Do you have a financial need for either?

Do I really need income/unemployment protection?

You dont need MPPI really but a standalone unemployment plan with permanent health insurance policy would be the financial need.

My broker recommended it but in the last 10 years I've had half a day off sick and I don't think that redundancy/unemployment will be an issue.

No-one ever thinks that until it happens.