life insurance, critical illness & redunancy insurance

petertaylor

Morning All,

need a bit of advice.
my wife and I are due to complete on our first move on the 28th Jan.

our mortgage adviser has got us some quotes for life insurance, critical illness & redundancy cover for our mortgage. they seem a little steep to me, so i was hoping to get some advice.

Wife's age - 27
My age - 29
both non smokers.

mortgage of 155250
at about £860 per month.

our broker has come back to us and said that for all our cover it will be £151 between us.

all advice gratefully received.

Peter

dunstonh

Is the cover comprehensive, average or budget? - level of cover will be the key driver behind cost
Is the mortgage adviser an independent or tied/multi-tied for insurance? (dont assume that just because they have access to different lenders that they do for insurances) - tied agents and multi-tie are more expensive than IFAs.

The broker is probably quoting you having full needs covered. In reality, most people dont do that and accept lower levels of cover by leaving things off and taking the risk.

petertaylor

Hi DunstonH,

cheers for the reply.

it is from an IFA, he has full access to the whole market.
its a comprehensive quote.

i accept that we need all of it, but we begrudge paying so much.
i guess its weighing up the risks, but this is our first time, and we honestly have no idea..

FinAdv

Hi,

Price depends on alot of factors.

1. Is there one single policy that covers life, critical and redundancy? or are these separate policies?

2. Is it joint policy for both of you?

3. Life - Is it decreasing term assurance? Does the amount assured decrease every year with the decrease in outstanding mortgage? For how many yrs is the life cover?

4. CIC - How much amount does critical illness insurance cover? i.e how much do you get paid if one of you become critically ill?

5. Redundancy cover - This is very important one.
How much do you get paid if one of you becomes redundant? Does it pay benefits for one person or for both of you? How long are the benefits paid for? 12 months or 24 months? What is the excess period (after how many days does the company start paying you?). Its normally 30,60 or 90 days.

Regards