What insurance did you take out when you got a mortgage, + pre existing conditions

GoldenShadow

My knowledge of insurance is limited to that of cars and pets, but wanted to clarify some things.

Firstly, broker discussed life insurance, critical illness cover and income protection. Life insurance seems a must, but I am less sure about the other two, and wondered what others opt for?

Also, pre existing conditions. I don't recall the broker asking any questions where I had the option to give this answer, but I have OCD. I wouldn't want to discuss this with broker anyway, but imagine the insurance etc will want to know these things, hence I should probably get quotes of my own. Am I right to think all three types would take pre existing conditions into account and the cost would go up as a result?

ACG

Personally I think Income Protection is more important than the rest.
It protects the one thing that will be paying your mortgage, bills etc.

As far as OCD goes (obsessive compulsive disorder?) Im not sure if thats something that result in an exclusion/rating - your unlikely to die/be off work because of it, although they may put a mental health exlcusion on...possibly?

Either way, dont worry about medical conditions I have been doing this job for around 3-4 years and I have seen far more embarassing conditions than OCD. But you can request a telephone medical instead if you wish to do it that way.

GoldenShadow

ACG wrote: »

Personally I think Income Protection is more important than the rest.
It protects the one thing that will be paying your mortgage, bills etc.

As far as OCD goes (obsessive compulsive disorder?) Im not sure if thats something that result in an exclusion/rating - your unlikely to die/be off work because of it, although they may put a mental health exlcusion on...possibly?

Either way, dont worry about medical conditions I have been doing this job for around 3-4 years and I have seen far more embarassing conditions than OCD. But you can request a telephone medical instead if you wish to do it that way.

Thanks, that's good to think more re IP that was the one I was thinking about the least so will re evaluate.

I had quite a traumatic childhood which left me with a myriad of health problems for a while. OCD is the long lasting one. If there is going to be a big exclusion on all mental health I'm not sure if it is worth me having it. I can understand why they would exclude it as in I know they are a business. I guess it's times like this I get extra resentful about my childhood and how things which weren't meant to be my fault seem to manage to continually haunt me.

And part of me wonders if everyone who has been off with stress at some time get an exclusion too, I've not explicitly had time off work for OCD. I guess I'm confusing whether it's medical history or work sickness they look at. I imagine the best people to talk to are the companies, but my history is a bit difficult so I'm putting it off I suppose.

ACG

Talk to your broker, they will run it by the insurers on your behalf. I guarantee it is easier to do that than try to do it yourself.

My gf had a week or 2 off work over xmas last year, it was put down to anxiety. I am actually looking at insurance for us at the minute and have been told there would be a mental health exclusion for her on income protection.

To me thats not an issue as she has changed jobs and is a completely different person now, so I know its very unlikely she would ever be off work with stress/anxiety. There are no guarantees in life but I would rather we are protected against everything else rather than nothing else.

If you have not had any time off work with OCD or any mental health issues, is it that much of an issue?

Jon_B_2

You'd be better off putting money into a savings pot than wasting money on income protection. Some lenders offer payment holidays if you overpay, so why bother?

Life insurance is self explanatory if you have a married partner and/or children.

kingstreet

The average duration of a PHI claim is over five years. You could pay one premium, be badly injured in an accident and never work again.

Your income would be paid for the remainder of the policy term. To retirement if you set it up that way.

That's one very large payment holiday.