mortgage protection insurance?

Sinked_boat

Just exchanged and now thinking about insuring my income as it is the largest of the two. Do people generally tend to do this or just get life insurance?

Critical illness cover seems pointless... Why pay for something that will only pay out for a few things?

Thanks everyone

monty-doggy

Critical illness will pay out if you are diagnosed with cancer, And many other illnesses. Many of which you can recover from. I wouldn't want to worry about my mortgage if I had to endure cancer treatment.

jacques_chirac

monty-doggy wrote: »

Critical illness will pay out if you are diagnosed with cancer, And many other illnesses. Many of which you can recover from. I wouldn't want to worry about my mortgage if I had to endure cancer treatment.

Not always, it will depend on the type of cancer and stage of progression.

Kynthia

I'm going to be looking at this soon as we're planning to take on a bigger mortgage and have a baby, so our work 'death in service' will no longer be enough. As I understand it Life insurance will pay out if I die but how much do you want it to pay out, enough to pay off the mortgage and subsidise part time working for the remaining parent for a few years? I know income protection and critical illness cover payout when your alive but not working for various reasons. Is it that income protection covers you for more situations such as unemployment and therefore would cost more? I'll talk to my IFA when the time comes.

dunstonh

Do people generally tend to do this or just get life insurance?

Some people will protect their income. Whilst others wont protect their income but will pay just as much protecting their Ipad or mobile phone. It all comes down to personal priorities.

Critical illness cover seems pointless... Why pay for something that will only pay out for a few things?

Those few things are statistically more likely to happen than death. You will probably find most mortgage advisers and IFAs will tell you that they see more claims on CI policies than they do life assurance.

As I understand it Life insurance will pay out if I die but how much do you want it to pay out, enough to pay off the mortgage and subsidise part time working for the remaining parent for a few years?

You are looking at two different needs with two different timescales. So, you would likely use two policies or two segments (if you go with a segmented plan).

Is it that income protection covers you for more situations such as unemployment and therefore would cost more?

Payment protection (PPI or ASU) covers you for redundancy. Income protection (PHI) covers you for illness and accident. Some PPI plans market themselves as income protection. So, you need to be careful you are not ending up with a PPI plan when you really wanted a PHI plan.

opinions4u

Those few things are statistically more likely to happen than death

<insert childish grin and whisper "he means during the term of the mortgage">