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Mortgage and Family Insurance

I am new to home owning. The mortgage is in my name however I live with my partner and daughter.

I am the main 'bread winner' and am looking to protect my family should anything happen to me. I have an NHS pension but not certain just what cover I get from this.

I'm considering looking for some mortgage and family protection. I'd be grateful for any advise on what I should be considering and eager to hear of any decent deals out there currently

Comments

  • dunstonh
    dunstonh Posts: 118,014 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I'd be grateful for any advise on what I should be considering and eager to hear of any decent deals out there currently

    You dont get deals on life assurance. Also, advice on life assurance is a regulated activity and the board and posters are not authorised to give advice. It is just comment and discussion.

    The NHS benefits package is not bad but its real aim is to make up for reduced pension income. It is insufficient for income replacement if you die and not suited for debt repayment.

    So, you would be looking at income replacement and debt repayment based on what you have said. The amounts and term for the mortgage are easy as the decreasing term assurance should match the repayment mortgage. For family protection you could have staged needs. A higher income replacement need until your daughter is around 23-25 and a reduced income replacement need after that (as costs would be lower). So, you may find that three policies/segments are suited.

    Your post indicates you are not married. So, it will be important to utilise trusts to make sure the money goes where intended and without tax. Plus, you should write a will.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ACG
    ACG Posts: 24,035 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    There are a few different types of protection you should consider, some of these will be useful to you...others might not be.

    - Income Protection (Long term), NHS staff get 6 months full pay, 6 months half which builds up over a 5 (i think) year period, so its worth considering this especially as the main bread winner, what would happen if you were off for any length of time.
    - Life Insurance, this pays out in the event of you passing away - this is useful for your family to know they wouldnt be kicked out of house and home if you were not around to pay the bills.
    - Critical Illness, pays out a lump sum on being diagnosed with one of the conditions listed (heart attack, stroke etc).
    - Unemployment cover, depending on your job within the NHS this could be something that would be useful or you would probably never need. This will only pay out for 12-24 months depending on who you take the policy out with.
    - Income Protection (short term) similar to the top insurance put will only pay out for 12-24 months, can be bought in conjunction with Unemployment cover in a contract known as MPPI or ASU.

    There are also other products on the market too, but those above should atleast give you a starting point.

    As for deals, its not really one of those things they do on special offer or discounted etc. The cost is based on you and your circumstances so it varies for pretty much everyone.

    Does that kind of give you an idea or have i baffled you more? If i have let me know and ill give it another shot :P

    You could also consult a Mortgage or Financial advisor for more info.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • grogsy
    grogsy Posts: 131 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    Thanks for the replies. Firstly when I mentioned deals I was meaning more are there certain companies out there I should be looking at approaching. My mortgage provider (Santander) is currently pushing us to see them but I'm of the understanding that a whole of market outlook is better.

    I hadn't considered income protection as I feel that it is unlikely for my to need more than 12 month sick pay without falling into the more serious illnesses category so that may be something i need to reconsider.

    I think the best way forward with this would be for me to contact an IFA and seek further advise.
  • dunstonh
    dunstonh Posts: 118,014 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Firstly when I mentioned deals I was meaning more are there certain companies out there I should be looking at approaching.

    Not specifically. Some focus on certain age groups or amounts of cover/term of cover. Whilst there isnt a great deal of difference on polices (you are either dead or alive after all), there are some differences which can make some plans better than others.
    My mortgage provider (Santander) is currently pushing us to see them but I'm of the understanding that a whole of market outlook is better.

    Yes. An IFA can walk all over the bank both in price and product quality.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ACG
    ACG Posts: 24,035 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    I agree with Dunston, an IFA/Mortgage advisor will be a far better option - Abbey i think are tied to 1 company, an advisor can look at more companies meaning you have more options. It will also be cheaper.

    Also whilst nobody can give specific advice on a forum as such, it would be well worth looking into Income Protection especially as the main bread winner. http://www.lv.com/lifeinsurance/incomeprotection/income_protection_tips_and_advice/claims-we-paid - look at the average length of a claim on the link. There are other companies that show their claim statistics you can find with a quick search.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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