protection

jaffs

When buying a house would you alway also purchase protection?

Been offered buildings and contents (which i will definately have) but also mortgage and lifestyle protection and decreasing mortgage cover, is there any need for these? I am single with no dependants

BitterAndTwisted

You are the only one who can decide whether you need these additional products but I would not buy them from whoever it is that's trying to flog you your mortgage.

ajb69

Deffo take the above advice about buying this independently - it'll save money; there's also good guides in the insurance section of this site.

This is also all just personal opinion; take it with a pinch of salt, and it comes down to the quality of advice you get and your attitude to risk.

Decreasing term life insurance: you may be required to take this out by your bank (I was) so they get the mortgage paid back in the event of your death. Otherwise, if you don't care what happens to the house after you die, then no need really. You can always take it out later if your circumstances change, and just buy it yourself over the internet.

Mortgage Payment Protection (MPPI): I have this, but 50/50 about if I still need it. My policy will pay out the cost of the monthly mortgage payments for 12 months in the event that I suffer accident, sickness or unemployment. The unemployment part on all these policies is pretty much unclaimable IMO - I have to be formally made redundant, which is pretty unlikely in my job (I'll just be asked to resign and offered a few month's extra-contractual notice to sweeten the pill, which isn't covered by the policy). But I keep it going just almost out of habit in case I am run over by a bus or otherwise end up on statutory sick pay, as at least it means my family won't be thrown out of the house. Having said that, if you've got enough savings and/or no dependents, then it's a bit less urgent. I'd also save money by buying over the internet.

Critical Illness / Income Protection plans: always suspicious of these because they carry such hefty commissions for the IFA. I got quoted about £60 p/m for these, but the policy wordings were riddled with exclusions so very difficult to claim and also very easy for the insurer to void the policy if you forget to declare a migraine you had 5 years ago. Up to you, but I'd do a lot of research personally - in the end I chose to spend half the money on a decent private healthcare policy instead.

Hope this helps you out somehow,

Drew