Help? Insurance/Protection Policies?

shandon1971

Any Advice would be Appreciated.

I am just about to buy a house & my FA has given me 2 quotes for Insurances & i wanted to know if I should go with their quotes or am i better off trawling the compare sites & geting my own Policies? There is a huge difference in the monthly premiums between the 2 quotes. On top of these monthly payments i still need Buildings & Contents.

The insurances are for:
Mortgage Decreasing Life or Earlier Critical Illness Cover?
MPPI (Unemployment only)?
Indexed Income Protection Benefit?

The Monthly premiums would be more than half what im paying for my Mortgage. Do I really need to pay out so much in insurances?

dunstonh

Never buy insurance from an FA. They are typically 25-40% more expensive than an IFA.

There is a huge difference in the monthly premiums between the 2 quotes.

A quote site will still be cheaper than an IFA and a lot cheaper than an FA. However, you dont get all the options on a quote site and you have to be wary that you are comparing like for like. A common error is where people have critical illness cover from the adviser but go with terminal illness cover on the quote site thinking there are the same. Or the adviser is quoting PHI style income protection but the person is getting internet quotes on payment protection style income protection.

DIY is good if you know what you want and what you doing.

Do I really need to pay out so much in insurances?

In reality, most people do not insure themselves for everything. Yes, you will have financial need for those things but often you have to compromise. Through discussion, a good adviser will make you aware of what you need for full protection but then adapt to your budget.

It is possible that you end up not taking out something which you then later suffer a claimable event which you are not insured for and you end up losing your house. You never know when you are going to suffer a claimable event. So, any decision to under insure involves risks and making a judgement call that you may get away with but you may not.

ACG

Your advisor should be explaining why you need these policies - not just giving you quotes.
Nobody on here can say whether you need them or not without more information.

However, it sounds like your advisor has basically given you quotes for pretty much everything. As Dunston has said you dont have to take out all of these policies and in reality very few people do.

Unemployment cover - is there a likelyhood you will be made redundant, and if it does happen what are the chances of you being able to get a job in the same or different industry? If you know your unlikely to be made redundant or you can get a job easily enough then do you really need it?

I also tend to find if people cant afford everything they usually drop the Critical Illness but keep the life insurance part. This is usually once you explain the pros and cons of each policy.

But your advisor really should be explaining the policies he has given you quotes for. He should be explaining the pros and cons of everything so you know what you are paying for and then you will know what you can make a claim for in the future if you need to.

dpac123

Speak to an independent adviser because there are a lot of things you need to consider. PM me if you want contact details for the independent adviser I use.

Wutang_2

dpac123 wrote: »

Speak to an independent adviser because there are a lot of things you need to consider. PM me if you want contact details for the independent adviser I use.

Who is this adviser Dpacker?? PM me