Life Assurance, Critical Illness & Income Protection

kymbee

Husband and I are remortgaging. No Life Assurance currently in place but we do have income protection which will need to be looked into as took out over 7 years ago. I didn't get cover as got it through work but have now moved jobs. Just wondering what type of Life Assurance to go for. We would like to be able to pay mortgage off and have some money left over after that so were thinking of Level Term. Are we able to get a level term until we die of old age or does it have to cover life of mortgage? Have looked around at some Policies and have found a couple that offer Terminal Illness Cover at no extra cost. Are these worth having? Also note from the site that Martin suggests Income Protection rather than a Critical Illness Policy. The Income Protection would only pay out while off work though and wouldn't pay a lump sum whereas the Critical Illness will pay out on diagnosis. Does anyone know of of a provider who offers the most coverage with regard to illnesses? With regard to income/mortgage protection am I right in thinking that income protection covers a certain percentage of your salary and mortgage protection only covers mortgage payments. If that is the case then would choosing income protection be the better option? If we did opt for Term Assurance with Critical Illness is there any other Insurance we would need?

dunstonh

We would like to be able to pay mortgage off and have some money left over after that so were thinking of Level Term.

Pay for the need. Not a tiny figure above it. If you need family protection then get a second term assurance to match that need and timescale.

Are we able to get a level term until we die of old age or does it have to cover life of mortgage?

Term assurance is for a defined term. Whole of life assurance covers a whole life need. However, most people dont need that so it would be a waste of money. Typically you would have two plans. The decreasing term assurance for the mortgage and a level term assurance or family income benefit for family protection.

Have looked around at some Policies and have found a couple that offer Terminal Illness Cover at no extra cost. Are these worth having?

They virtually all offer it at no cost.

Also note from the site that Martin suggests Income Protection rather than a Critical Illness Policy. The Income Protection would only pay out while off work though and wouldn't pay a lump sum whereas the Critical Illness will pay out on diagnosis. Does anyone know of of a provider who offers the most coverage with regard to illnesses?

Permanent Health insurance is above CI and mortage payment protection or general insurance income protection in the pecking order of need.

These products are regulated and I would be in breach of FSA rules if I posted which I felt was best (there is no one best option anyway. It varies on needs). However, I often point out the ones to avoid if someone is looking at them.

With regard to income/mortgage protection am I right in thinking that income protection covers a certain percentage of your salary and mortgage protection only covers mortgage payments.

They all have a limit but it depends on the type of income protection you buy.

If we did opt for Term Assurance with Critical Illness is there any other Insurance we would need?

Buildings, contents, PHI

kymbee

Thank you for your reply. Very helpful. Hopefully will get sorted this week.