MA wants me to take our insurance, is it worth it.

jimpix12

Hi all, I have been approved for a mortgage and now my MA is saying I should take out business protection insurance against loss of earnings. I am a company director I have about 6 months of savings to live off of should things go down the pan, do I really need this?

Would be interested in hearing thoughts, as I usually don't bother with insurance unless required by law. I have no dependents.

G_M

Is this 'advice' from your advisor (and does he earn commission?) or is it a condition of the mortgage offer?

If the former, of course it is up to you - as with most insurance it's a question of what risks you are prepared to take, which in turn depends on many factors eg what dependants you have, what contingency funds you have, how secure your business is. blah blah

and also your general attitude to risk.

jimpix12

No, the mortgage is fine with or without it. Yes, the MA would earn commission, I would probably go through moneysupermarket if I wanted it, as it's cheaper than through using my MA. But just wanted general advice and if anyone else had taken it out with a mortgage, etc.

betmunch

Only take it if you think it is worth it. Also, only go through Moneysupermarket if you KNOW you are setting it up correctly

G_M

spunko2010 wrote: »

No, the mortgage is fine with or without it. Yes, the MA would earn commission, I would probably go through moneysupermarket if I wanted it, as it's cheaper than through using my MA. But just wanted general advice and if anyone else had taken it out with a mortgage, etc.

General advice is as already given.

Anyone else? No point asking unless both their detailed circumstances AND their attitude to risk is identical to yours.

phill99

I run my owm company and don't have business protection insurance. Its a wste of money and only promoted by people who have a vested (ie commission) in it.

If you have no dependeants and 6months salary in the bank, then it would be an absolutely pointless expense which any business could do without.

I read an article a while ago and it suggested that you only need 3 types of insurance in life:

Car insurance because its a legal requirement, house insurance (buildings and contents) as this protects your major asset and life insurance as this provides for dependants if you spark your clogs. The rest is all rubbish invented and promoted by a commission hungry insurance industry.

betmunch

Phil that is highly irresponsible posting at best. You state that the OP doesnt need the insurance yet you dont know anything about the OPs attitude to risk, concerns for the future, medical history, and most of all you dont know what is going to happen to them in the future. If the OP doesnt take the insurance on the strength of your claim he doesnt need it, are you going to make good on his lost income if it turn out he actually did need it after all? No. I didnt think so

phill99

betmunch wrote: »

Phil that is highly irresponsible posting at best. You state that the OP doesnt need the insurance yet you dont know anything about the OPs attitude to risk, concerns for the future, medical history, and most of all you dont know what is going to happen to them in the future. If the OP doesnt take the insurance on the strength of your claim he doesnt need it, are you going to make good on his lost income if it turn out he actually did need it after all? No. I didnt think so

I don't know what your problem is but I imagine its difficult to pronounce.

You're talking rubbish.

The OP asked for opinions. I gave mine. As a company owner and appreciating the issues, I still believe that it is a waste of money and am happy to promote that.

If the OP makes a decision based on opinions received on this forum, then he is a fool. Just as he would be a fool if he sought the advice of a 'bloke in the pub' who had just drunk 8 pints of Guiness. But I'm sure he isn't a fool and will seek appropriate advice.

As I suggest (and many on here will agree with me), most insurance products are sold for the benefit of the insurance industry and its agents.

jimpix12

OK, I didn't mean to start a turf war My attitude to insurance products is similar to phil99's... I'd much rather put the money into a savings account than give it to an insurer.

However.... What I am really looking for, and am not able to find and suspect I'll need to speak to the broker tomorrow... If I did plump for one of these protection policies what are the caveats? For example do they only cover X but not Y? For a specific term? Anyone know...? Just trying to weigh up the pros and cons of it. There is no clear definition unless I read the 30 page T&Cs.

PS: I am healthy, I have no dependents, and the business is doing well.

phill99

From my experience thay normally only kick in after a number of weeks, by which time, most illnesses are dealt with and you are back to work. They will always favour the insurance industry, not the insured.

Its much the same as a sales assistant telling you how good the washing machine is that you are interested in buying, only to tell you at the counter that it might break down so you really need breakdown insurance, the cost of which will actually equate to the cost of a new WM.

And, as you suggest, you're healthy, have no dependents and do well in business, you have probably answered your own question. Also, look at your own signature quote - this sums it up admirably.

betmunch

phill99 wrote: »

I don't know what your problem is but I imagine its difficult to pronounce.

You're talking rubbish.

The OP asked for opinions. I gave mine. As a company owner and appreciating the issues, I still believe that it is a waste of money and am happy to promote that.

If the OP makes a decision based on opinions received on this forum, then he is a fool. Just as he would be a fool if he sought the advice of a 'bloke in the pub' who had just drunk 8 pints of Guiness. But I'm sure he isn't a fool and will seek appropriate advice.

As I suggest (and many on here will agree with me), most insurance products are sold for the benefit of the insurance industry and its agents.

Fair play, a measured response, maybe I should have reread befor I hit submit. Your right, it is your opinion and I can accept it as opinion rather that the statement of fact I had in my head. I apologise for that. I am not going to conceed that what I said was rubbish, as it wasnt. If you are worried about stuff happening you take insurance to protect you from that stuff. If you are not worried about it then you save your money.