Hi all,

I'm in a position where I need to get some or all of the above on a mortgage on the house I'm buying. As I'm buying it alone and have no dependants I won't need life insurance. My mortgage broker (before you insult him he's a member of the family ) has given me some quotes but the array of options are bewildering and I'd like a frame of reference to compare them too.

So, anyone recommend anywhere where I can get some good quotes, preferably on the internet? Also, is there anything in particular I should be looking for when I come to compare insurances like these?

I'm in IT so needless to say it's classed as a 'high-risk' occupation for redundancy and illness and such like.

Thanks in advance!

Simon.

 

Simon,

Have a look round www.thisismoney.co.uk as it is a recognised web finance advise site and may be able to give you an overview of the options you need on your mortgage.

Yex - with critical illness cover

 

Thanks Yex.

 

Simon,

I got my critical illness through my mortgage company and after discussing it with them (well bartering I guess) had it fairly heavily discounted, just a thought. I'm also in IT and fly microlights so it needed some discounting..

Sean

 

After finding out that critical illness policies typically pay out in only about 30% of cases where you will be off work long term we put all our insurance into income protection (I am a Doctor so don't need redundancy protection - we are an endangered species) - after all if you can't work you need the money, not if you happen to have one of an impressive looking but quite exclusive set of medical diagnoses. Also we went for a policy with a a long term so that the premiums are guaranteed over that term even if our health deteriorates, and the policy would also pay out for that duration if we could never work in out OWN occupation ever again because of sickness or accident. This sort of policy costs the most, but was the only one that reassurred us.

[Edited by john banks - 2/14/2002 4:25:10 PM]

 

if you loose your job could you get another? if yes then the main prob is sickness- and as john has said a PHI/income replacement plan is your best option- not expensive when you compare how much it could be paying you over time (ie- go sick at 30 and it pays you till 65 = big money)

and again make sure you get OWN occupation cover.

Tiggs

 

Redundancy type insurance is one of the most expensive(huge margins) and also difficult to get a payout from(see Watchdog passm) I personally avoid it purely based on that. I've got critical illness on 85K endownment and it costs about 8 quid a month extra. Not sure if its worth it but the payout is definately 100% on specific illnesses, some clauses on %damage regarding Heart attacks and some other exclusions e.g drug abuse but it looks pretty straight forward.
As the doc says income protection is very expensive, just check out those ridiculous policies Credit card firms offer 2 quid per month per 1000quid on the card.....
Worst case you rent out or sell up if it gets that bad and if you get laid off you may need to move to get another job anyway, especially in IT.

Regards
Cammy

 

Thanks for the replies guys - Lots of good stuff to be thinking about.

Simon.

 

For my life assurance the standard quote for a 25yr old male non smoker was £27 per month from Norwich union. Fill in form..." Do you do any dangerous sports eg scuba diving, rock climbing..." I climb, so tick yes. Send form off, they send climbing questionnaire back with sensible questions on it, so I fill that in and send it off. Quote comes back..........£92 per month!!! What's more, they won't cover me for climbing accidents!!W T F??????
Went with standard life as their quote only went up to £39, but they won't cover the climbing either! *****!!!!

Shop around!!!

 

I was diagnosed with MS five years ago and fortunately I had Critical Illness cover which paid off the mortgage. Unfortunately, it was only a small mortgage, now I've got a much bigger mortgage with no protection!!!

What I didn't have was Income Protection and do you think I can get it now!!!

In a nutshell, go for as much protection/insurance as you can afford and as with everything else - shop around.

Neil