Mortgage protection - how much do you pay?

KatieXZoe

I am a FTB just exchanged on my property and am trying to sort some mortgage protection out for myself and my partner. 

I already have income protection, ( I am a veterinary surgeon so my risk of injury from work is higher than a lot of other professions), which I pay for myself. My partner is a teacher. 

I asked our broker to come up with some quotes for lifetime protection and critical illness cover for us they seem extortionate. 

We were quoted £168 a month or £93 a month as a 'cheaper alternative' for both mortgage protection, and separate critical illness cover. The difference between the two figures is one includes income protection for my partner (who gets 3 months paid sick leave anyway so would kick in after this). 

Can anyone share how much they pay per month for this sort of thing as there figures seem incredibly expensive... 

K_S

@katiexzoe My other half and I pay about £120 in all for life, cic and IP BUT it's a higher deferred period, taken out when we were young and healthy and includes some optional extra features for children. If we had to take the same now, I probably wouldn't get IP (due to health since) and the cost would be much higher. My point is that there's not much to be gained by comparing your options to another person's as there's a huge amount of variability based on age, the features you've opted for, health, profession, etc. If I think about the last two protection packages I've arranged for clients, the latest has been around £200/month and the one before than was less than £50/month.

What I would suggest doing is - breaking down the cost into its individual components - life, CIC and IP. Life and CIC are available on a non-advised basis so you can compare the quote to what you get quoted by looking it up on major insurer websites or comparison websites.

IP is harder to compare but if you think it's too high you can speak to another protection-only broker and see what they are quoting and compare.

Good luck, I hope you get the protection you require at a cost that you're happy with!

KatieXZoe said:

I am a FTB just exchanged on my property and am trying to sort some mortgage protection out for myself and my partner. 

I already have income protection, ( I am a veterinary surgeon so my risk of injury from work is higher than a lot of other professions), which I pay for myself. My partner is a teacher. 

I asked our broker to come up with some quotes for lifetime protection and critical illness cover for us they seem extortionate. 

We were quoted £168 a month or £93 a month as a 'cheaper alternative' for both mortgage protection, and separate critical illness cover. The difference between the two figures is one includes income protection for my partner (who gets 3 months paid sick leave anyway so would kick in after this). 

Can anyone share how much they pay per month for this sort of thing as there figures seem incredibly expensive... 

ACG

I only pay about £15 a month, but I really need to review it. I took out an income protection policy for about £700 a month 6 years ago. At the time that covered my mortgage (£300), gas/electric bill, council tax, and made a dent into some other bills - tv license, insurance etc.

Now though, we have a bigger house, a kid and with the cost of living I am not even sure it covers a night out. 

Its all relative though, age, occupation, health, amount of cover all come into play. 

As a teacher, your husband is high risk for income protection - I think he would be a class 3 (out of 4) from memory (I used to work for a life office). A vet, I am not sure. I know nurses are higher risk but unsure about vets. You will both be on reasonable wages so a higher amount of cover might be needed compared to the average person. 

You do not need to cover everything. As above, £500 would have covered the bulk of my bills at one point. With my girlfriends income at the time we would have been fairly comfortable. Now though, it would not make a dent.

dunstonh

Can anyone share how much they pay per month for this sort of thing as there figures seem incredibly expensive... 

I pay £107pm, and I am underinsured.

Make sure your adviser is whole of market for insurance and not tied.  It can make a difference on the premiums as tied agents of an insurer tend to be more expensive (many estate agent brokers are whole of market (or large panel) for mortgages but single tied to one insurer).

kingstreet

Without ages, smoker status, amount, term, provder etc the monthly cost doesn't tell us much.

It might be a massive cost for £50,000 cover or it might be really low for £250,000.

dimbo61

We took out Level term life assurance for our mortgage amount some years ago with fixed monthly  payment for the whole term till our retirement.
As we have reduced the mortgage over the years we now have a bigger pot to pass on if either of us should die.
The same level of cover today would be 4X the premium  we pay each month.
Done with Cavendish direct and we paid a small commission  up front. 
This is only for Life Assurance not critical  illness or income protection but No need to have everything  with the same insurers 

IdrisJazz

Attitude to risk is a massive factor for protection. 

I have always made sure we have adequate life cover, primarily because it is pretty cheap, and I won't resent not having used it.

Critical illness and Income Protection cover is not cheap, especially when you're a little older and it is more likely that you will need to use it (which of course explains why it is not cheap).

If you need it, it is worth every penny you've paid. But you will pay a lot more in your lifetime, and you probably won't need it. Bear in mind, the CI definitions can be really quite severe, for example not any old cancer diagnosis will be sufficient, and something like loss of limbs tends to be loss of at least 2 limbs, one of which must be above knee or elbow. So even having the cover is no guarantee that you would get a payout in your specific circumstances.

Personally, I couldn't bear to pay the figure you quoted, but I have a desk-based job that means I am less likely to not be able to work.

ACG

IdrisJazz said:

Attitude to risk is a massive factor for protection. 

I have always made sure we have adequate life cover, primarily because it is pretty cheap, and I won't resent not having used it.

Critical illness and Income Protection cover is not cheap, especially when you're a little older and it is more likely that you will need to use it (which of course explains why it is not cheap).

If you need it, it is worth every penny you've paid. But you will pay a lot more in your lifetime, and you probably won't need it. Bear in mind, the CI definitions can be really quite severe, for example not any old cancer diagnosis will be sufficient, and something like loss of limbs tends to be loss of at least 2 limbs, one of which must be above knee or elbow. So even having the cover is no guarantee that you would get a payout in your specific circumstances.

Personally, I couldn't bear to pay the figure you quoted, but I have a desk-based job that means I am less likely to not be able to work.

Income protection does not usually have those definitions. It is usually - "are you unable to do your job due to accident or ill health?" - there are exceptions.

My income protection policy has something in it called "best doctors". I have used it twice, once after my daughter was born and she was in and out of hospital (I was able to get a second opinion on her condition) and once when I found some lumps where as a bloke you dont really want to be finding lumps to get a second opinion... No harm making sure the Drs had not made a mistake when it comes to potential cancer (it wasnt). For me personally, if I never make a claim on it, the £4-5k it will cost me is well worth it. But I do understand everyone is different. 

IAMIAM

Use money world for quotes....well worth it....
I have £3k Permanent Long Term IP with 6 month deferral with permanent premiums at £370 per annum until age 65 with L&G
I then have £150K life with CIC with L&G too fixed until age 70 at £328.

Wont be cancelling both anytime soon. Both from money world....seemed to be the best site around at the time when I took them out..aged around 30

ACG

IAMIAM said:

Use money world for quotes....well worth it....
I have £3k Permanent Long Term IP with 6 month deferral with permanent premiums at £370 per annum until age 65 with L&G
I then have £150K life with CIC with L&G too fixed until age 70 at £328.

Wont be cancelling both anytime soon. Both from money world....seemed to be the best site around at the time when I took them out..aged around 30

Do that through a broker and I bet you could get them to give you £50-60 a month. 

IAMIAM

same price effectively