Mortgage protection

maunders

hi all just looking for some advice re mortgage protection. I am 24 years old, FTB. My full time job I have death in service insurance of 125k which would cover cost of the mortgage. I also have conditions where If I am sick I get 6 months full pay 6 months half pay. At the moment I cannot be made redundant in my role but who knows what can change many years in the future.

I'm just looking at what people think with regards to mortgage protection, I was just looking at critical illness cover as I really seem to have ASU cover already for 12 months with work..and would be a waste of spending £25-30 a month for lifetime cover...what do people think and what cover do you have?

ACG

Critical illness is good - but what happens if you become unable to work for a reason which isnt covered by it?
I would also look at PHI/Income Protection - it will pay you a monthly amount until your chosen retirement age or the end of the term...whichever is sooner.

If your looking for advice though, it would be to see a mortgage or financial advisor.

The_J

Income protection is often seen as a good type of policy and cheap if you have a deferred period of a year (or even 6 months when your work benefits drop for the first time). It does depend on what type of job you do, if you break a leg badly for instance as a builder you are pretty !!!!ed whereas if you work behind a desk it could literally be 2 weeks off work.

maunders

Well I'm in the police. So if I say broke my leg I would be put on a desk job until it healed.. But with the windsor reforms looming it may well be worth looking into phi..

princessdon

I work in an area where it was assumed you have a "job for life" and will be out of work by July. I only took the insurance approx 9 mos ago but at this point in life it is my lifeline to sanity knowing I have that bit extra.

I don't pay critical illness or death but do pay redundancy and for the £18 a month for the cover of mortgage, gas, leccy and insurances I pay it.

I guess it is a personal choice and if you are 100% sure of your job then it will be money down the drain.