Reassure hubby we'll be covered!

Lu_T

Hi

We currently pay ridiculous amounts of money for our mortgage protection and life assurance. I've just reviewed Martin's articles and we plan to take up policies with Cavendish Online (term life assurance) and Best Insurance (unemployment and incapacity protection).

Can anyone reassure my hubby that we will be covered should the worst happen? We have a 5-month old daughter (see avatar) and want to make sure she will be okay. He is nervous about changing our policies as we got them through an IFA who properly understood our requirements.

We plan to take a level term policy from Cavendish for £115k which will cover our mortgage and a bit left over. We have also got a quote from Best Insurance to cover our £805/mth mortgage payments. However, this will mean we have to find the money for the rest of our bills (council tax, utilities etc) if one of us was ill/made redundant - one wage does not cover it. At the moment our income/salary is protected, not just the mortgage payment, so the new policy would be inferior to the old.

Help please?!!

Techno

How much are you saving by taking out an inferior product and how much would an equal product cost?

Lu_T

I'm just doing some work through moneysupermarket.com - so far a policy just for hubby to cover mortgage plus £180 for other expenses is £27/mth and will pay out for 24 months.

We would need to pay this plus £11 for term assurance, plus a premium for me (as yet unquoted). We currently pay nearly £130 for the lot!

I'm not convinced we need any of this as we're both civil servants with little/no chance of redundancy and get 6 months full and 6 months half pay for sickness.

Techno

You definitely need life cover - most places would recommend a minimum of £250,000 - if this only covers the mortgage then a significant amount more would be needed. You also need to check out what the other insurances such as mortgage protection will pay out for - I believe they are notorious for trying to 'wriggle out of paying'