Mortgage insurance

ncfc1980

Apologies, I'vea already posted this on the insurance board, but not sure if it's more relevant here:

Hi all,

Just interested to get other people's opinions on what they'd look at it in my circumstance.

I'm just taking out my first mortgage (£114k), I'm 35, single and earn £36k. I have two children (eldest is step son) who are resident with their mum but spend approx 3 nights a week with me.

I've been in my job for 11 years and have Death in Service cover of 6 x salary, so £216k. Also I get 6 month full and 6 month half sick pay. On the basis that I'm single and kids live with their mum, what kind of insurance, if any, would people be looking at in my circumstances?

I've got some quotes for an Income Protection policy,as follows:

- £577 (mortgage payment) per month for 2 years (after sick pay expires) for £8.32 per month.

- £577 per month until 67 (again after sick pay expires) for £16.23 p/m.

- £1100 (half of net salary) for 2 years £13.66 p/m

-£1100 until 67 for £30.32 p/m

I'm erring more toward the £1100 for 2 years, but not sure it's even necessary really, or if there is something more appropriate?

Any thoughts greatly appreciated.

Thanks

ACG

Im a big believer in income protection (the long term one).
The average claim depending on insurer (and also the governments ESA claims) vaires between 5-7 years. So if you were mr average, what would you do for the other 2-4 years? I would rather take less cover and be protected for a longer period.

ncfc1980

So are you advocating the longer term but lesser rate I.e. 577? I was thinking that I may split the difference and cover the mortgage plus 25% so maybe 720 per month for term. The quotes I was given were covering me until 67, I presume I can specify a lesser term of my choosing if I wanted?

Would any claim I subsequently put in, have an affect on any other state benefit I may be entitled to, as obviously it's pointless receiving an amount from the insurers if it just reduces the state benefits I would be entitled to for being long term sick.

ACG

My reply was on a personal level rather than a professional one as I am not allowed to give advice on here.

Think about how much you need and how long for, thats the cover you need. Saving £3-4 a month now could put you in a difficult position down the line.