Payment Protection

lion-o

Im a first time buyer looking to get a mortgage soon.

I was just wondering everyone's opinions on payment protection.

Is it worth getting?

How much is it likely to be?

Thanks!

kingstreet

Against what risks do you wish to protect?

Death?
Unemployment?
Illness or disability?
Critical illness?

The cost of the cover will be determined by your age, the term, your medical history, the amount of cover, your occupation and several other issues.

I suggest you seek advice from an IFA (one who actually sources from the whole market) avoiding banks, building societies, estate agents and other tied agents who may have only one expensive, poor-quality product.

~Beanie~

I can only speak for the unemployment cover but I definitely thought it was worth it when it paid my mortgage for 7 months whilst I was out of work!

ACG

When taking out a mortgage you have to look at your needs and how much you want to protect against them:
Ill health (long term and short term)
Redundancy
Critical Illnesses
Death

What would happen financially in the event of any of those happening?
What would you want to happen? - would you want the mortgage cleared for your partner in the event of death? Would you want to receive an income in the event of ill health? etc etc.

As kingstreet says, the cost is dependent on loads of different factors. Its possible in most cases to fit in with certain budgets. To cover everything might cost £100, but if you only have £25-30 to put towards it, then it can be possible to put enough in place to ensure your not homeless should anything happen.

20vt-rs

I have critical illness and life cover as I believe these are extremely important, but have saved up an emergency fund to keep me going for approx 6-9 months in the event of redundancy. I did have redundancy cover but it was quite expensive for what the pay out was and it only covered me for up to 12 months anyway... Worst case you take a job, whatever it is to pay the bills etc.