Mortgage Protection Insurance Discussion

Good article. Cant find any flaws on first read.

I dont know if its worth adding though that you can get standalone unemployment only cover (useful for those with good sick pay) and that there is also permanent health insurance which is proper income protection for the long term and underwritten at point of sale and not point of claim like PPIs. A brief mention of those would be useful as for many people they are the better options. (PHI and standalone "U").

edit: I spotted a few references to "ASU" in the article. The product stopped being called ASU a while back and is no longer recognised by the FSA as that. It may be worth removing the ASUs and replacing them with MPPI to keep the article consistent.

worth mentioning that 2 of the listed best buys are the same provider and that not all insurers that undrwrite the policies ( including at least one of the best buys ) are Uk based?

please refer to http://forums.moneysavingexpert.com/showthread.html?t=1438805 about this matter

where can I find out more about Permanent Health Insurance from ?

PHI has historically been a product that had offerings under investment class regulationa and protection regulation. It is also generally a low commission product (so not much scope for discounting) and many of the providers still require paper quotes and paper applications. Plus, there is no standard with PHI. Each provider offers different levels and often different versions (worth thinking budget, standard and comprehensive). Its not really a product that is geared for the DIY internet market. This is why the lower cost, simpler (but inferior) payment protections are more common on the internet.

is this better than an income protection policy

For accident and sickness, a PHI is far superior unless you buy a budget version. the budget ones tend to be similar to PPI withour unemployment.

want something that covers the mortgage as well as other necessary expenses in case of death or due to any illness not just critical illness which may prevent me from working, as well as due to accident and unemployment.

Trying to get that all in one will mean compromises. Either in price or in cover. Segmenting your needs is often better although in some areas you can have one provider for multiple "segments".

From the articles I understand that level term insurance may be more efficient than my policy if I was to die (god forbid

Or family income benefit or whole of life assurance (although the article doesnt even mention those).

but when I go to the online sellers such as cavendish, they ask if you want the benefit to increase in line with inflation.

If you have an increasing need then you select it. If you dont then you dont.

Am I right in thinking for Level term insurance I say no here?

Obviously Level term is not for a mortgage. So, if you looking for family protection you may or may not need increasing. Or you may need or prefer a family income benefit or a combination.

Also what is family income benefit as this also comes up as an option ?

Instead of paying a lump sum, it pays a monthly income. Generically, it should be cheaper than level term assurance to cover income replacement needs.