best way to cover 200K mortgage

nicknicknick_2

hi

recently moved house an upped mortgage to 200K !!!

currently lookign around at variouos insurances to cover most/all eventualities.
wife and i both work and have 2 young children.

is an income protction policy better than multiple single polices like critical illness, terminal illness, also been offered a policy which pays an amount each month until youngest child is 18. only works out at 9.00 per month for a £1000 per month.
also must have critcal illness and death benifit. about £60 per month

sooooo confusing

thankis

homer_j_3

The first thing that you need to understand is what each policy and does.

Life cover - will cover you in the event of death

Critical Illness - Will pay a lump sum in the event of being diagnosed with a specified critical illness (note the words "specified")

Permanent Health Insurance (aka Income protection) - Will pay you an income for as long as you are off work with a sick note - providing you are off for more than the deferred period.

Family Income Benefit - This is an insurance that would help replace the income should you or your wife die

Mortgage Payment Protection Insurance (aka Accident Sickness & Unemployment) These polices are normally cheaper versions of the income protection policy but have limited claim periods on 12 months normally - however some do 24 months.

The above is not a comprehensive guide but just an outline to the main polices that can be offered.

The first thing you need to decide is what you can afford and then work out what your priorities are. I would always recommend getting advice if you are serious about ensuring you get most for your money as professional advisers will know what polices are decent and which are guff.

For example, I used the term "specified" in the critical illness explanation, some insurers will cover more and will be hotter in certain areas than others.

Finally, I always remember this phrase "Cheapest isn't always best, especially when it comes to parachutes, scuba equipment and lifestyle protection"