Mortgage Insurance???


I am not sure whether this should be in the mortgage or insurance section, so here goes...

My partner is buying a house for the first time. He is over 50, non smoker and is needing some advice. He wants to take out an insurance plan that covers for short and long term illnesses (which may require time off from work) or if he dies before the mortgage is paid off. Is there an insurance that covers all this? Or does he need a life and a mortgage insurance? Failing that what does he need? Its such a minefield, he doesn't know where to look first.

Many thanks in advance.


  • tacpot12tacpot12 Forumite
    6.9K Posts
    Seventh Anniversary 1,000 Posts Name Dropper
    He will need two different forms of insurance: Life Lnsurance to cover the chance that he dies before he pays the mortgage off, and some form of Permanent Health Insurance that will replace some of his income if he can't work due to illness. He can also buy Critical Illness Insurance if he wants this. Critical Illness Insurance typically pays out a lump sum if you contract some forms of illness that mean you will not live very long. 

    Note that Permanent Health Insurance can be quite expensive, especially aged 50, so he may need to set a long deferred period before it pays out -  12 months is a good place to start with the deferred period. If he is employed, he should get sick pay for 6 months, and Employment and Support Allowance (ESA) for a further year, but neither of these will pay all his mortgage, so it is likely that he will need some savings. He will also need savings for short term illnesses. If he is self-employed, he will need a lot more savings as he won't get sick pay or ESA.   
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • kingstreetkingstreet Forumite
    37.9K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    A menu plan combines different benefits such as life cover, critical illness cover and income protection. Get independent advice on this as buying this direct would be fraught with potential issues.

    The first one - "own occupation."
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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