What insurance would you get in these circs?

Barclayloan_query

I'm going to be buying a shared ownership property and getting a mortgage for the first time. Just thinking about life insurance/critical illness etc The mortgage is going to be very small (56k) as it's only a 30% share.

My circumstances are:

Mid 30's
Single
No dependents
Earn 29k
Full sick pay for 6 months, then 1/2 pay for 6 months
No debt
Minimal savings once I've purchased (as savings going on the deposit/legal fees etc)

Any thoughts on whether the policies are worthwhile in my situation?

I believe the rent element of shared ownership would be covered by housing benefit after my sick pay has ended if I was unfortunate enough to develop a long term illness.

dunstonh

permanent health insurance, critical illness cover, home insurance would be the generic answers to the question.

InsideInsurance

What are your plans? You say you are single/ no kids now but is that the long term plan too?

If you died tomorrow who would you be leaving your worldly goods to?

Speak to an IFA or advisory Protection Broker is what I would do.

My personal priority given current circumstances would be Permanent Health Insurance (PHI) which is the full fat version of Income Protection that would pay out a salary to you until your retirement age if you are too unwell/injured to work. This could be have a deferment period given your sick pay from work and that will lower the price.

Barclayloan_query

InsideInsurance wrote: »

What are your plans? You say you are single/ no kids now but is that the long term plan too?

If you died tomorrow who would you be leaving your worldly goods to?

Speak to an IFA or advisory Protection Broker is what I would do.

My personal priority given current circumstances would be Permanent Health Insurance (PHI) which is the full fat version of Income Protection that would pay out a salary to you until your retirement age if you are too unwell/injured to work. This could be have a deferment period given your sick pay from work and that will lower the price.

To answer the Q's...

Hopefully I won't stay single but kids are unlikely. If I died tomorrow I'd leave everything to family, I get a 100k death in service benefit so that's pretty much all they'd get.

With the PHI (had never heard of that before now) I guess that's not something that is exclusive to those with mortgages eg as a renter that's probably just as important yet I don't have any kind of life/health insurance at the moment.

I haven't applied for the mortgage yet (waiting to hear back from HA as to whether my application has 'won' as there are lots of interested parties) so haven't discussed insurance options but my initial thoughts were that the mortgage is so small it's not worth paying out for a policy that the max benefit would be £250 a month, the house is valued at 200k and if I was getting a mortgage for 180k I'd definitely want some kind of mortgage insurance.

Dird

Yeah I wouldn't bother with a mortgage only coverage either (mines < £80k).
The guaranteed income is more tempting but then if I had a desk job & lost my legs I guess they'd argue that I could just use public transport 2 hours each way to avoid them paying out?

InsideInsurance

PHI is relevant to most people unless they get it via work or are independently wealthy.

Even if you've paid off your mortgage it costs money to live and if you are acustom to a certain standard of living you may not want to have to cut back to be able to live on benefits alone. If you're a surgeon and developed an incurable tremor you wont ever work again but that doesnt mean you want to stop having a nice car or going on nice holidays. PHI written on an Own Profession basis would cover this as you can retain almost your full prior salary.