FTB Life and Critical Illness Insurance

HGW2012

We had a meeting with our Broker and I am a little confused with the information he has given us.

He was obviously trying to sell us some kind of cover. He first called it Payment Protection and later called it critical illness cover. Are these one in the same?

Do we need these types of cover or would we just be better with Life Insurance. We both have jobs which we have been in for plus 10 years. We have company sick pay and redundancy pay.

dunstonh

He was obviously trying to sell us some kind of cover.

A broker has to make you aware of your financial needs in respect of the mortgage. Most people take out insurances to cover their mortgage. So, he is doing his job.

He first called it Payment Protection and later called it critical illness cover. Are these one in the same?

No. They are different things.

For a mortgage, the produts that you would expect to be considered are (in no particular order):
life assurance
critical illness cover
MPPI
PHI (income protection)

Some mortgage brokers are tied to an insurer and may not have all the products above available. L&G, for example, have a lot of tied sales reps who cant offer the full range (this is why whole of market advisers (in all areas) or IFAs are recommended to be used).

Do we need these types of cover or would we just be better with Life Insurance.

We do not know your financial circumstances. So, we cannot say what you do or do not need.

HGW2012

Thanks for your response, I know he was just doing his job. There was no hard sell or anything.

Ok now I am even more confused, I really am not sure what he offered us.

It was with L&G.

We asked him to send the quote so probably best for me to go over it.

I am so unsure on all these types of protections I think I was just hoping I could be told what I should or shouldn't get.

kingstreet

Only you can establish your current protection arrangements and set needs and priorities for the future.

If you can't do this alone, you should take advice from someone not tied to one provider following discussions on which agreement is reached on the above and a budget for any cover set.

The end result is the most effective cover, at a price you can accept addressing the needs you feel are the most important to you.

dunstonh

It was with L&G.

L&G has very weak critical illness cover (CIC). Of all the mainstream providers, it has the least conditions covered. So, whilst its ok for life assurance, it's not for CIC. If it is being recommended for CIC then there is a good chance your mortgage adviser is a tied rep for legal and general.

Take a look at the initial disclosure documents they issued. The one that tells you their status as an adviser. It will say if they are tied to L&G. Or if they have emailed you. It may make reference in their signature if they are tied to L&G.

Tied agent insurances tend to be more expensive than the whole of market/IFA version (even when using the same company). Plus, if you want a quality CIC, you are not going to get it from an L&G rep.