Life insurance & Mortgage Protection. Advice Pls!

slinx

Myself and my partner are currently trying to sort out Life Insurance and Mortgage Protection.

Currently, if i die, my employers pay out x4 of my salary. Which covers the whole of our mortgage. If i'm sick or have an accident my sick pay only covers 2 months full and 2 months half at the moment.

My partner gets 6 months full and 6 months half if she's sick or had an accident.

Now, i figure that i don't need Life Insurance in my name, because of what would be paid out from my employers. But i need to have mortgage protection to cover unemployment or sickness/accident.

Also that my partner should have life insurance, to cover death only. And mortgage protection to cover unemployment only. Her current sick pay would help otherwise.

Does this sound sensible? And whats the benefit of having Critical Illness cover with the Life Insurance if you have Accident/Sickness cover with your Mortgage Protection?

Any advice would be appreciated!

Thanks.:p

dunstonh

And whats the benefit of having Critical Illness cover with the Life Insurance if you have Accident/Sickness cover with your Mortgage Protection?

Accident/sickness cover with your mortgage is a general insurance policy which is not underwritten to your circumstances. It is lower on the pecking order than PHI and Critical illness due to the limited timeframe that it pays out for and that it isnt underwritten personally (like life, CI and PHI are).

ASU for your partner is a waste as she gets 6 months full and 6 months half. For both of you a PHI policy would appear to be a better option. If you are still concerned about unemployment, then a standalone unemployment policy could be considered.

slinx

OK excellent, thanks very much for your advice.

I'll get on with it over the next few days, but might have to come back for further advice!

Cheers.