Which insurance do I need?

To help answer the questions above, it's worth asking yourselves the 'what ifs':

1) What situations would pose a problem in ensuring you can remain in the property?
Potential answers: Loss of job, loss of ability to work due to ill health, loss of life (probably the most extreme).

2) What's the likelyhood of those things happening?
Examples: The chances of you being unable to work due to ill health is probably the most likely. The chances of you passing away is relativley low, but would have a big impact.

3) What are the solutions?
Ill health provision = Income Protection or Critical Illness Cover
Death provision = Life Insurance


In general terms, income protection and critical illness cover are more expensive than life insurance, primarily because they're more likely to happen.

Comparing the one against the other, Income Protection insures you against anything that stops you being able to do you own job either physically or mentally, paying out on a monthly basis (almost like a sick pay replacement) until you're fit enough to return to work or the end of the claim period, and therefore arguably more important than Critical Illness cover (which covers you for limited conditions to a set severity) although pays out a lump sum.

Life cover is relatively simple - you're either alive o you're not, and therefore a lump sum would be paid to the remaining partner to help them repay the mortgage or continue life with some financial stability. This product should be a 'given' really, and will be quite low cost based on your ages (assuming there are no health complications).

Worth speaking to an adviser though if you want a detailed clarification of the options available.

Hope this helps a little!