MattW

Just after some inside knowledge as to what sort of income/mortgage protection policies people have.

Mortgage just about to start again at 25 years for a sum of £193k (Gulp), our existing CI plans are level term and are due to increase in cost massively so they need replacing. We currently pay £51 a month for individual plans covering about 80k and 60k, which is not nearly enough to pay the full amount off.

I'm the main breadwinner, we could live without the wife's income but not mine. My employer is pretty good, and would pay salary for a few months in the event of an illness\accident, possibly long term. I have 4* salary life assurance which would pay mortgage and provide a decent sum for the wake and it provides a 50% spouse/children pension.

Not sure whether to go for a CI plan, mortgage protection or income protection. What are other people's take on it?

BlkKnight

Me and the other half have no dependants.

We are paying off 200k over 25 years and have 50k equity in the property.

We have not bothered with any insurance for illness or unemployment - botom line being:

We have equity in the house which would cover us for any short term problems.

Long term, we sell up and buy somewhere smaller.

fast bloke

I would leave wifeys policy as it is and get yourself £193k CIC policy and mortgage payment insurance for the amount of mortgage payment deferred for 3 or 6 months (depends on your employer) - be careful when comparing policies... MPPI, MPI, ASU, IPB, and FIB can all look the same, but are substantially different when it comes to claim time

fast bloke

Have you really thought that through? If one of you is sick long term and you decide to sell up, you have 50k and less income to spend on a new mortgage. You will use up 8-10k on fees, so assuming you both earn similar amounts you will be looking for a house for maybe 120k? Not sure about house prices round your way, but 120k in Belfast will get you a good sized parking space

BlkKnight

We are both young and have good security in my families business.

It's all down to probability at the end of the day, and how you measure your "risk".

If we had kids, I'd probabily look into getting some sort if cover, but as it's just the two of us (and we are in fairly good health) I don't see it being a problem.

MattW

Thanks fb, it turns out that work provide a long term sickness policy that pays 75% salary indefinitely. So no point in having Mortgage/Income protection, CI is a different matter if I would like a lump sum, however it is not required to cover mortgage so a suitable figure for fun can be bought!

fast bloke

Most income protection/mortgage protection policies are limited to a % of your income (so that you can't take on out and stay off sick forever) so as you say there is no real requirement for one - You probably don't really need CIC either, but if you have a few quid spare every month it would be a good idea. The thing you should give first consideration to is enough life cover to make maintain the balance of your income until your kids are grown up

MattW

Work provide Spouse/Children pension of 44% of income on my death so do you mean

((((salary * 18) *56%) - (4 * salary)?

Where 18 is years when my youngest reaches 21?