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MPI? Income protection? what do i NEED?
sazikal
Posts: 2 Newbie
Ive read some of the other posts on here but not being financially minded im still a bit confused!
We've just bought a flat through a shared ownership scheme. We have a 71k mortgage that covers our 25% of the flat and we pay rent on the other 75%.
We're quite young (23 and 30) and have no dependents so from what i've read i don't think we need life insurance?
It doesnt seem that critical illness is a good idea as most seem to be specific illnesses.
But im unsure what we do need??
Most people seem to be talking about mortgage payment insurance but then others say it doesn't have a high success rate of getting the money? and that wouldnt cover us for the rent side of it either? So would income protection be a better choice?
Thank you for reading this and thanks for any advice you can give!!!
We've just bought a flat through a shared ownership scheme. We have a 71k mortgage that covers our 25% of the flat and we pay rent on the other 75%.
We're quite young (23 and 30) and have no dependents so from what i've read i don't think we need life insurance?
It doesnt seem that critical illness is a good idea as most seem to be specific illnesses.
But im unsure what we do need??
Most people seem to be talking about mortgage payment insurance but then others say it doesn't have a high success rate of getting the money? and that wouldnt cover us for the rent side of it either? So would income protection be a better choice?
Thank you for reading this and thanks for any advice you can give!!!
0
Comments
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If either of you were to die, would the other be able to afford to make the payments? If yes, then you don't really need it. If no, then you do.We're quite young (23 and 30) and have no dependents so from what i've read i don't think we need life insurance?It doesnt seem that critical illness is a good idea as most seem to be specific illnesses.
Critical illness has a better success rate on claims and likelihood of claiming than mortgage payment protection. Its actually not far behind life cover statistically.
Mortgage payment protection is a rubbish. It has an awful success rate on claims and its underwritten at point of claim and not point of sale.Most people seem to be talking about mortgage payment insurance but then others say it doesn't have a high success rate of getting the money? and that wouldn't cover us for the rent side of it either? So would income protection be a better choice?
Permanent Health insurance is the best income protection option although it doesn't cover unemployment. However, you can get unemployment plans as a standalone option so you can still have that if you wish.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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