Insurance cover

NorthernOne

I have my repayment mortgage approved which I am happy with but when I was going through the UW process I was asked about insurance and that one of the banks representatives could ring me to discuss etc...I said ok and discussed critical illness cover and life insurance/unemployment with them and they sent me details of what we discussed.

Now I didn't agree to anything but have received chasers from the person about what do I think about the products do I want to proceed etc....

I have looked over the mortgage offer and it says nowhere that I have to have these products

2 questions really:

1. Do I have to have them?
2. If I did want them could I seek alternative sources so if they are cheaper with another company?

Any views would be appreciated.

kingstreet

No.

Yes. They will be a lot cheaper and probably better quality if you get independent advice.

Typically, you'll get 40% cheaper on the same plan via an IFA, or if you use an IFA to compare quality, you'll see, for example, the likes of Scottish Widows (LBG's in-house provider) has a much poorer quality contract than from an IFA where you'll be offered the likes of Friends Life, Scottish Provident, Bright Grey, L&G etc., the DEFAQTO 5 star contract providers.

As you can never be sure what illness you might get, I'd consider Income Protection (PHI) first, as you get a regular monthly income if unable to work due to accident or sickness. Critical illness cover only pays out if you get a serious enough bout of one of a shortish list of conditions.

Ensure you get "own occupation" cover if going the IP route and avoid the cheaper economy versions which only pay out for a short time. The average IP claim is over six years.