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  • FIRST POST
    • kerensah
    • By kerensah 10th Feb 18, 6:45 PM
    • 1Posts
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    kerensah
    Income protwction insurance
    • #1
    • 10th Feb 18, 6:45 PM
    Income protwction insurance 10th Feb 18 at 6:45 PM
    Hi
    Do I need income protection insurance as well as life and critical illness cover (for my mortgage)? I was sold both by a mortgage broker on my first house years ago and now I'm a bit older and wiser I'm realising I probably don't need income protection?
    Any advice would be much appreciated
Page 1
    • csgohan4
    • By csgohan4 10th Feb 18, 6:52 PM
    • 4,427 Posts
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    csgohan4
    • #2
    • 10th Feb 18, 6:52 PM
    • #2
    • 10th Feb 18, 6:52 PM
    depends on your circumstances and if you got a good deal at the time
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • BooJewels
    • By BooJewels 10th Feb 18, 7:29 PM
    • 273 Posts
    • 203 Thanks
    BooJewels
    • #3
    • 10th Feb 18, 7:29 PM
    • #3
    • 10th Feb 18, 7:29 PM
    Do you mean 'payment' protection? Mortgage policies often comprise 3 elements: life - critical illness - payment protection.

    Life and critical illness usually pay a one-off lump sum if you either die or are diagnosed with a qualifying critical illness on their list. The third aspect, payment protection will pay an amount each month for a period of time (probably 12 months) that is equivalent to a percentage of your mortgage payment - ours at present is 133%. This pays out if you're unemployed or can't work through illness or are injured in an accident.

    So each of the three elements has a different complimentary purpose and it depends on your circumstances as to which is appropriate for you. If you're in a safe job with good benefits you might not need payment protection etc.
    • csgohan4
    • By csgohan4 10th Feb 18, 11:22 PM
    • 4,427 Posts
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    csgohan4
    • #4
    • 10th Feb 18, 11:22 PM
    • #4
    • 10th Feb 18, 11:22 PM
    Do you mean 'payment' protection? Mortgage policies often comprise 3 elements: life - critical illness - payment protection.

    Life and critical illness usually pay a one-off lump sum if you either die or are diagnosed with a qualifying critical illness on their list. The third aspect, payment protection will pay an amount each month for a period of time (probably 12 months) that is equivalent to a percentage of your mortgage payment - ours at present is 133%. This pays out if you're unemployed or can't work through illness or are injured in an accident.

    So each of the three elements has a different complimentary purpose and it depends on your circumstances as to which is appropriate for you. If you're in a safe job with good benefits you might not need payment protection etc.
    Originally posted by BooJewels
    income protection can also be until your retirement date, again depends on your needs. It also can be about 60% of your gross income as well but obviously it becomes more expensive
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • ACG
    • By ACG 11th Feb 18, 3:04 PM
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    ACG
    • #5
    • 11th Feb 18, 3:04 PM
    • #5
    • 11th Feb 18, 3:04 PM
    If you mean income protection that will pay you an income if you are unable to work until a set period (usually either retirement or the end of your Mortgage), what makes you think you do not need it?

    If you die, life insurance pays out. You stop being an expense (ie food, heating etc).
    If you do not die but are unable to work, you might get a lump sum payout on critical illness, but what if you get an illness not covered by CI? You are still an expense. There is still a Mortgage to pay, there are still bills to pay.

    Of all 3 policies, the only one I have is income protection (PHI).
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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