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    • PipS
    • By PipS 3rd Jul 17, 10:09 AM
    • 6Posts
    • 2Thanks
    Which insurance do I need?
    • #1
    • 3rd Jul 17, 10:09 AM
    Which insurance do I need? 3rd Jul 17 at 10:09 AM
    About to exchange on a house so my partner and I are thinking about insurance but very confused which we need or would be best.

    We are in our late twenties/ early thirties, no kids at the moment.

    Do we need life insurance or mortgage life insurance or income protection insurance? I thought mortgage life insurance with critical illness was the best option but now I'm thinking income protection instead?! I've researched so much I've totally confused myself.

    Any advice would be much appreciated!
Page 1
    • LJE091
    • By LJE091 17th Jul 17, 2:43 PM
    • 14 Posts
    • 0 Thanks
    • #2
    • 17th Jul 17, 2:43 PM
    • #2
    • 17th Jul 17, 2:43 PM
    Sorry PipS I have no advice to offer you but thought I would jump onto your post as my boyfriend and I are in exactly the same position. FTB, not far from completing, late 20's early 30's, no kids and totally confused by which insurance to get!

    Is buildings/ contents and critical illness a good option??? The more I look the more confused I am...

    Hopefully someone will post some advice for us soon
    • pjereed
    • By pjereed 17th Jul 17, 3:28 PM
    • 38 Posts
    • 12 Thanks
    • #3
    • 17th Jul 17, 3:28 PM
    • #3
    • 17th Jul 17, 3:28 PM
    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!
    I am a Protection Adviser that specializes in Life Insurance, Critical Illness Cover & Income Protection.

    The posts included in this forum do not constitute advice and should be used as guidance only. If advice is required you will need to contact a Protection Specialist directly.
    • CD*
    • By CD* 17th Jul 17, 3:57 PM
    • 9 Posts
    • 5 Thanks
    • #4
    • 17th Jul 17, 3:57 PM
    • #4
    • 17th Jul 17, 3:57 PM
    CIC & IP preferably.

    (Critical Illness Cover & Income Protection)

    Life Cover is normally thrown in for free with CIC, because it's so cheap, and you're far less likely to claim on it.
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