Mortgage Insurances - HELP

sarahf_2

Hello everyone


I completed on my very first home today..!!! I've already sorted out the building and contents insurance but I am completely lost when it comes to the other insurances. I want insurance to cover me if I lose my job/made redundant and if I get too poorly to work (I have a great sick pay policy at work where I get full pay for the first 6 months)


It's only myself and my daughter so I have to make sure we will keep the roof over our heads should the worse happen


many thanks everyone

pinkteapot

Here are some initial guides to start you off:

http://www.moneysavingexpert.com/mortgages/payment-protection-insurance
http://www.which.co.uk/money/mortgages-and-property/guides/do-i-need-mortgage-insurance/

Mortgage payment insurance will only cover your mortgage payment and not any of your other bills. Income protection covers whatever monthly amount you choose, so could pay as much as your job, if you want, but is obviously more expensive.

You need to work out how much you want the policy to pay out monthly before you can work out what you need.

The alternative is to self-insure - save up X months worth of living costs and put it in a savings account. People choose to do this not just because of the cost of mortgage/income protection, but because they tend to have quite a lot of exclusions etc which limit the circumstances in which they'll pay out.

You'll get more advice on the Insurance board:
http://forums.moneysavingexpert.com/forumdisplay.php?f=21