First Time Buyer needs advice please!

AllyR_2

Hello - I have just completed on buying my 1st flat today (hurrah!) :j - I've taken loads of tips from this website - and I have masses to thanks Martin and everyone on the board for.... I have saved huge amounts already.. however I am now rather confused as to the insurance policies I need... and what's the difference between life assurance, critical illness cover and MPPI? Do I need all of them? I'm in full time job, have no dependants, no debts aside from the mortgage.... what would you advise I need?
Also - I am on a 2 year interest only mortgage - I want to put away about £250 a month into some kind of savings vehicle - is an ISA the best choice?
Any help and advice would be gratefully received.. thanks!

sra

Hi AllyR

You asked a few different questions there and the best thing would be really to seperate them and put them on the appropriate board where the people who know can help.

to start you off I'll move this from Site Feedback to Insurance and Life Insurance for that part of your question

jasonking

Life insurance - pays off the mortgage debt if you die. As you are single with no dependants then you could decide you dont need this as if you were to die the lender can sell the property to pay off the mortgage.

Critical illness - provides a lump sum (to pay off the mortgage?) if you are diagnosed with one of around 30 critical ilnesses. These are serious conditions like cancer, heart attack, stroke etc. If you are interested in this then you will probably end up having to buy life ins as well, as CI comes as an optional extra on life policies.

MPPI - provides a regular income if you cannot work for reasons of any illness or accident or unemployment. This is an easy type of insurance to buy but generally has lots of exclusions so be careful and also make a comparison to Income Protection (PHI) as this could be better value.

You should see if your employer provides any of these benefits to you already

Re Savings, an ISA would be a popular choice, flexible and tax efficient.