Mortgage protection insurance

Nola1

My previous mortgage protectuon Policy was arranged through my mortgage broker. My current monthly payment is £125 for key 3 critical illness with life insurance and life plan - term assurance. Apparently this is quite expensive so I am looking g for a much cheaper policy. Out of interest does anyone have this type of policy at a cheaper price? I’ve tried to search but it’s asking questions that I’m not too sure how to answer. Please help! 

dunstonh

 Out of interest does anyone have this type of policy at a cheaper price?

You haven't told us what your plans are.   Are they budget plans, mainstream plans or comprehensive plans?   Are you looking to replace them with a budget plan or oter?

Nola1

Sorry yes I’m looking to cut costs to find a cheaper policy 😊

tacpot12

Do you want critical illness insurance?

Do you own your property with anyone else? 

Nola1

Yes my husband. Is that usually something everyone includes? 

Weighty1

The AIG Key3 policy is the most basic of all critical illness policies, only covering 3 conditions.  Strangely it is often not the cheapest policy either or is minimally cheaper than a plan which may cover 30-odd conditions.  Based on that, you are unlikely to find a like for like policy which would be significantly cheaper since it will be at the cheaper end of the scale.

You can cut costs in a variety of ways, such as having life insurance to cover the full mortgage but critical illness cover which only covers 1/2 the mortgage, however, any cost-cutting exercise is very likely to leave you in a position were the new cover is not providing the same level of cover as the original plan.

The exception to the above is if you had the premium "rated" when you first took the plan out?  If you did, it may be that a different insurer would offer more favourable terms.  

There are options such as looking at life insurance and income protection rather than life and critical illness cover, however, if you were going to go down this route I recommend speaking to an adviser who can put some options together based on your circumstances rather than trying to DIY.

tacpot12

I would recommend ditching the critical illness cover if you need to save money. I would also recommend getting a quote for level term life cover for the amount of the mortgage covering you and your husband's lives (on a first death basis). Then compare this with any sort of life cover that offers a decreasing amount of cover. If the decreasing cover policy isn't cheaper than the level term policy run a mile from it.