Using a broker for life and buildings insurance

jbrassy

Hi all,

I've had an offer accepted on a house and I'm currently going through the early stages of conveyancing. I engaged a mortgage broker early on and I'm pleased with the job they did in securing me a mortgage before the effects of the budget started to affect interest rates on mortgages.

Now they have asked for a call to discuss life insurance and income protection and buildings insurance.

On life insurance, I already get life assurance through work which pays 8x salary in the event of death in service and have income protection which pays 70% of my salary. Both of these should be adequate to cover my share of the mortgage should the worst happen to me (I'm buying with my partner). I'm aware that I will lose these benefits if I lose my job (which I consider pretty unlikely), but I just wanted to ask how many people out there buy their own life insurance/income protection policies, despite still getting it through their job? 

Separately, I'm aware I should take out buildings and contents insurance at the point of exchange (which probably won't happen until January realistically). I was planning to do this myself by going through a price comparison website like Money Supermarket. However, I'm curious as to whether there is any benefit in doing this via a broker instead? Will they actually get better deals, or will this be swallowed up in their commission?

Thanks in advance for your help!

user1977

I doubt buildings insurance will be any cheaper via a broker (unless there's some peculiarity about the property which puts it out of the criteria for mainstream insurers).

Albermarle

 but I just wanted to ask how many people out there buy their own life insurance/income protection policies, despite still getting it through their job? 
Probably not very many, unless they are a bit naive.
I think if you tell the broker you are covered through work, they will lose interest.

kingstreet

Some things to think about.

How long will your employer pay your 70%? Short or long-term? Permanent health insurance will pay until you retire (or return to work of course) and you need a lower level of benefit because on individual income protection the benefit is paid tax-free unlike what is paid via your employer. The typical claim lasts six years or more.

Death in service cover is designed to replace your lost income so your dependents can maintain their standard of living and debt repayment may not be a sensible use of the benefit. Decreasing term assurance is cheap for mortgage repayment and family income benefit can supplement DIS.

Brokers will typically use higher quality B&C products (ie DEFAQTO five stars) which will be more expensive but will include things like 'trace & access' which has been stripped out of the comparison sites' rush to the bottom. Cheap cover is great if you never need to claim.

Albermarle

Brokers will typically use higher quality B&C products (ie DEFAQTO five stars) which will be more expensive but will include things like 'trace & access' which has been stripped out of the comparison sites' rush to the bottom. Cheap cover is great if you never need to claim.

Many of the big name home insurance providers have a 5 star rating. Axa, LV, Halifax , Nationwide, NFU, Admiral, AA, Ageas, Aviva, Churchill, esure, Direct Line etc etc .

I am with LV=  and it covers 'trace and access' up to £5K