Bought New House - What Insurances????

PUREHOMES

I am totally confused.

Just bought a new house and the mortgage broker is trying to flog me all sorts of insurances.

Which ones do I actually need? At the moment, on our current property we have building and contents, and also life insurance for myself and my partner.

The broker is trying to flog me income protection, critical illness, terminal something or other etc etc.

All I want to know is which ones i definately need.

Thanks!

jonesMUFCforever

For the house itself Buildings and contents.
To cover you (and partner) consider what would happen if one of you fell ill and was unable to work for a considerable period. Would you be able to manage mortgage repayments on top of all other bills?
If answer is no consider critical illness, unemployment etc cover BUT SHOP around. Do not accept the quotes from your broker without finding out exactly what you are covered for and at what cost and then use the internet to compare costs with other companies.

dunstonh

When you buy a house, you are taking on a responsibility. Some of the things you are required to do, others its a good idea to do.

If you have a joint mortgage, then how would the other continue to pay for the mortgage if one of you was to die? If you lost an income how would you be able to continue to afford to live there on one income?

PUREHOMES

I have just looked and these are the insurances that i have been offered, there is a lot of literature with them and some seem to overlap each other. In your opinions which should i take? All the following are combined prices for my partner and I:

BUILDING AND CONTENTS - £30 (Obviously taking this)
MORTGAGE DECREASING LIFE AND CRITICAL ILLNESS - £65
INCOME PROTECTION - £40
MORTGAGE LIFE AND TERMINAL ILLNESS - £27

Im really confused, but I think most bases are covered even if i opt not to take the mortgage decreasing life and critial illness.

jonesMUFCforever

First of all get quotes for pure life assurance. If you are youngish and in good health then this should be very cheap.
This will cover your mortage should one of you die before it is paid off.
Google and this site is your friend.
Feed some numbers into comparison sites for the various cover until you come up with a package that suits and that you can comfortably afford.

dunstonh

MORTGAGE DECREASING LIFE AND CRITICAL ILLNESS - £65
MORTGAGE LIFE AND TERMINAL ILLNESS - £27

The second one is not additional to the first. It is one or the other. £27 is pure life assurance (ignore terminal illness as they virtually all have that now). The £65 is the same as that but with critical illness included.

A whole of market mortgage adviser isnt necessarily a whole of market general insurance adviser. There are three classifications of adviser (examples in brackets):
1 - general insurance (protection adviser)
2 - mortgage (mortgage adviser)
3 - investment class (IFA)

You can be whole of market in one of those and tied in another.

So, make sure your adviser is whole of market otherwise you will be paying over the odds. Your premiums suggest you either have a very big mortgage or your are in your late 30s (or you are seeing a tied insurance adviser)