Mortgage Protection - query!

djleekee

I am a first time buyer and now am looking at the insurance side of things.

It seems that there are three types of insurance that I may need! (correct me if im wrong!)

There is life insurance, mortgage protection and accident and sickness cover.
(once again correct me if im wrong - im new to all of this and its a bit of a minefield)

The way I understand it is that I am not forced into having any of these types of insurance but it is recommended that I do.

I am 33 and will decide on the life insurance plan once I move in and sort out all the house related stuff first.

THEREFORE.

Can I get one insurance deal that covers the mortgage and accident and sickness cover?

If so, what price can I expect to pay?

I have seeked financial advice where the quotes given are:-

Critical Illness cover £40.67
Mortgage Protection £28.02

Im not sure whether these figures are a bit excessive on a 100k mortgage.

Ive looked at Martin's guides for Mortgage Protection and using Best Insurance their combined quote for both Mortgage Protection AND ASU comes to £16.30

There is a massive difference in these figures and I wondered if I havent grasped the difference in types of insureance I require or whether I am being totally shafter by my advisor.

I look forward to your replies.

Lee

System

djleekee wrote: »

I am a first time buyer and now am looking at the insurance side of things.

It seems that there are three types of insurance that I may need! (correct me if im wrong!)

There is life insurance, mortgage protection and accident and sickness cover.
(once again correct me if im wrong - im new to all of this and its a bit of a minefield)

The way I understand it is that I am not forced into having any of these types of insurance but it is recommended that I do.

I am 33 and will decide on the life insurance plan once I move in and sort out all the house related stuff first.

THEREFORE.

Can I get one insurance deal that covers the mortgage and accident and sickness cover?

If so, what price can I expect to pay?

I have seeked financial advice where the quotes given are:-

Critical Illness cover £40.67
Mortgage Protection £28.02

Im not sure whether these figures are a bit excessive on a 100k mortgage.

Ive looked at Martin's guides for Mortgage Protection and using Best Insurance their combined quote for both Mortgage Protection AND ASU comes to £16.30

There is a massive difference in these figures and I wondered if I havent grasped the difference in types of insureance I require or whether I am being totally shafter by my advisor.

I look forward to your replies.

Lee

Same boat as me mate, Halifax just quoted me £70 extra a month for all insurances :mad: They can insure themselves against me not taking there mortgage.

djleekee

LOL - you looked at the Best Insurance website? It seems too cheap to be true?

Lee

System

djleekee wrote: »

LOL - you looked at the Best Insurance website? It seems too cheap to be true?

Lee

Nice, I'll take a look, though I need to get a mortgage sorted first anyway..... its a minefield.

djleekee

Best of luck with the mortgage hunting.

I spent the best part of a week hunting for the best deal and the best deal was the original quote that my financial advisor had given me!

I tried in vain to beat it via the web but couldnt - the only gripe was their £250 fee for finding but even then it was still near a £1000 cheaper over two years!

Martin has made a guide re mortage hunting and there are some good tips in there. try and find a mortgage advisor who is fee free!

Back to my insurer problems and I think I've worked out that there is Basic mortgage protection which includes accident, sickness and unemployment cover but there is also Life/Cricital Illness Cover aswell.

Being 33 can I get away with just the basic or should everyone go for the Critical cover aswell?

Lee

Rick62

Mortgage payment protection insrance (MPPI) is often poor value, paying only the mortgage and for a limited time.

Life is good cover, cheap, pays whole mortgage, well recommended if you have any dependants.

Critical Illness is good but often pricey. I often recommend clients take, say, the equivalent of one years salary, which would not pay the mortgage but would allow one to take time off work, pay for some private medical etc.

Income protection, again good policy, and need not cost much if you play with the initial exclusion period etc.

Usually, for the price of MPPI, you can get life, income protection and some Critical giving good cover for an affordable price.

MortgageMamma

You could consider taking a multi benefit plan that puts some life assurance, a contingency critical illness, say £25k ,and income protection all together -and then a stand alone redundancy policy, if you don't have dependants you dont need the life cover though,

djleekee

I am 33, single male with no dependants.

My employees already pay full pay if you are off on the sick for six months then after that there is indefinate pay at 50% until they decide enough is enough and get rid of you.

I don't feel that I should rush into the Life Assurance side of things but I think the ASU mortgage protection deal at £16 seems reasonable!

Lee

regularsaver1

hullmackem wrote: »

Same boat as me mate, Halifax just quoted me £70 extra a month for all insurances :mad: They can insure themselves against me not taking there mortgage.

They use level term, and it depends on your mortgage payment and balance (how much to insure)

JoeK_3

djleekee wrote: »

I am 33, single male with no dependants.

My employees already pay full pay if you are off on the sick for six months then after that there is indefinate pay at 50% until they decide enough is enough and get rid of you.

I don't feel that I should rush into the Life Assurance side of things but I think the ASU mortgage protection deal at £16 seems reasonable!

Lee

By the sound of things you require a good Permanent Health Insurance policy that will protect you against Accident and Scikness for the term of the mortgage.

In your circumstances the standard mortgage payment protection insurance will cease to pay just as your income ceases. Get yourself a quote for a 12 month differed period, permanent health insurance.

JoeK

djleekee

Im still a bit confused on what different types of mortgage protection schemes there are and whether they are compulsory and which one's are relevant to me.

I was under the impressions that ASU cover was fairly useful - that £16.30 quote would cover my mortgage and have no excess penalties.

Is Permanent Health Cover the same as Critical and Illness Cover? Do I need both or can I leave it a bit before jumping in and getting it?

Lee