Payment/mortgages protection worth it ?

[Ozster]

Is this worth getting ? Can anyone please share experiences?

It sounds good as they pay a years work of mortgage/income should to you be made redundant or fall ill.

But I’d like to hear people’s views so I can make an informed decision .

Thank you

I think it is worth it for anyone who doesn’t have a substantial amount in savings tbh. Same for critical illness cover, no one can predict the future and it’s worth it for the peace of mind imo

Several years ago I was off work for 6 months. (health reasons) Once my company sick pay ran out I would have been in financial difficulties if I hadn’t had mortgage protection insurance.

More recently I had 6 weeks off recovering from an operation. The extra cash was a bonus.

Yes I’ve probably paid out more over the years than I’ve claimed but I like having the security of not being at risk of losing my home/being unable to afford food IF something happened. I’m paying for peace of mind.

Yes of course it's worth it especially at the moment. Those policies are like gold dust too at the moment as most insurance companies pulled them from the market due to covid.

Mine is £45 a month and pays out £1400 for 12 months for either redundancy or sickness. (This is enough to cover the mortgage and couple of loans we have) Makes me feel much more secure at the moment

I think order of priority is life insuarance, income protection for critical illness, mortgage protection for redundancy.

If you have kids make sure you have life insurance. I can't stress this enough, knowing a young family facing terminal illness and no insurance.

I think income protection can cover a % of income for up to 2 years once sick pay runs out. It depends what savings you have but I think it is well worth it to not have stress, worry.

You always think it won't happen but 1 in 2 will face cancer, also once you have had certain illnesses the options for insurance decrease a lot, premiums go up the older you are when you take it out etc.

As soon as I pass my probation I am taking it out. Read the small.print carefully.

Most people get death in service payments from their employer so life insurance isn't as crucial

More people are likely to be made redundant than they are fall critically ill. Also most employers have some form of sick pay which can last several months. So redundancy insurance should be top of the list also most redundancy policies also pay out for illness so you have double protection their

Most critical illness policies also only pay out once a doctor has confirmed you only have a short amount of time left to live which in my experience it's incredibly difficult to get a doctor to testify to that. My insurance company advised not to bother with it since life insurance policies will also pay out before death if doctors confirm only a couple of months to live and save yourself paying out 2 premiums

@ivfbeenbusy - sorry, but way too much misinformation there to address.

You are confusing terminal illness benefit with critical illness.

I have had a client have a stroke, the critical illness payout, and he was back in work in 6 weeks. With no mortgage left and a nice lump sum on top.

Unemployment cover is currently unavailable, so even if it was at the top of the list, you can’t get it.

Many employers will on pay statutory sick pay, which generally is insufficient to cover people’s liabilities.

I would seek professional advice from an IFA, not from a forum. Things like this are too important for arm chair advisers.