Mortage protection insurance

jjlandlord

A little survey of the community, if I may:

Do you have life and critical illness insurance for your mortgage?
What's the premium?

Thanks.

somethingcorporate

Yes, joint with my wife.

I think we have £160k of cover for about £27 pm for critical illness and death - I also have death in service benefits to about £200k with my employer.

mij544

I do, but it depends if you need it, for example, I would advise a client of mine who was single with no dependents to look into income protection, as this would be a threat to their ability to pay the mortgage.

Like most things in life, you cannot generalise, these thing depends on personal circumstances, affordability, age, existing conditions etc.

opinions4u

£23pm for £40k of life and CI cover. £7pm for £550pm of PHI cover. Lots of additional life cover flying around as well.

I'm wildly underinsured for PHI and CI cover.

kingstreet

£67 per month for death or earlier critical illness cover and a family income benefit which pays £10k pa until our daughter is 18.

jjlandlord

Thanks for the replies so far.

I obviously do realise that it depends on personal circumstances.
Our mortgage adviser is pushing us to get such cover. I tend to be quite cynical and he is paid on commission... So it's re-assuring that 2 mortgage advisers here replied that they do have that kind of cover themselves

hcb42

I dont have it.

I did have it once, took it out in 1997 when I moved to a bigger house with a big mortgage, (£98K at the time). I was earning about £45K, so we insured just me, and I recall it being about £40 a month back then with Halifax. I then downsized and paid off most of mortgage in 2002, so didnt have a need for it any more.

I have a £160K mortgage now...but I think I chose not to take it because of the cost, on the basis I could save that money off if we do fall ill/made redundant or whatever. I do save hard, and have plenty of equity so I could downsize as well if anything should happen. So I have self insured I guess.

kingstreet

My parents worked in the industry. My stepfather was one of the youngest broker consultants in the country back in the 1950s. He later became an investment specialist.

I spent a couple of hours talking to them about family protection back in 1987 when I was a broker consultant with Sun Alliance & Phoenix. We looked at the cost of life cover and other issues. He never got round to it. In October that year, he was diagnosed with cancer and was dead the following June. He was 52 and left my Mum and my half-sister (9) unprotected.

I've had a critical illness claim as an advisor. Young staff nurse had a stroke during childbirth. NU paid out just over £100k and she returned to work about six months later having spent time in rehabilitation, not having to worry about paying the mortgage or the bills.

We all have to establish our needs and priorities ourselves. I don't think anyone should view another's choice as the right or wrong answer.

dunstonh

I tend to be quite cynical and he is paid on commission

So pay him on fee basis instead.

Do you have life and critical illness insurance for your mortgage?

I have no financial need for CI insurance but I do have life assurance. Professionally, I have dealt with more CI claims than life assurance claims and I have been doing this a long time.

opinions4u

dunstonh wrote: »

I have no financial need for CI insurance but I do have life assurance.

Without being too nosey, is that because you have PHI cover instead? Or is there another reason?

dunstonh

opinions4u wrote: »

Without being too nosey, is that because you have PHI cover instead? Or is there another reason?

Business is a partnership and have people who would fill in with roles I would do. Even if I paid them extra I would still have more than enough income going forward. I already cherry pick a lot of what I take on. As for the need for a lump sum payment, lets just say I have no shortfall there that needs filling by insurance.