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Original poster

what kind of life/critical illness/salary insurance do you have?

31 replies

starlover · 01/03/2006 13:57

we're in the process of taking out our own mortgage and i'd be interested to know what type of cover people go for... and why!

dp wants to err on the side of caution and have life, critical illness and phi
this will be around £80 a month

is it really worth it? maybe that can't be answered...

OP posts:
Original poster
starlover · 01/03/2006 19:10

bump

OP posts:
jane313 · 01/03/2006 19:14

we have none. I have had a mortgage for 15 years.

I keep thinking about life insurance but I have read so many things about the mortgage salary protection insurance not kicking in for ages or finding loads of get out clauses with peoples illnesses so they never get paid.

expatinscotland · 01/03/2006 19:15

only life insurance. £250,000 worth. enough to buy my family a house.

Saggarmakersbottomknocker · 01/03/2006 19:16

We have decreasing term insurance to cover the mortgage. We both have life policies with critical illness cover.

Original poster
starlover · 01/03/2006 19:19

our mortgage adviser has found us a couple of policies for salary protection where you can say when you want it to kick in... this can vary from 1-12 months

i just don;t know what's best... £80 a month is a lot of money isn't it?
but then, if dp was ill then there's no way on earth we could pay the mortgage..

OP posts:
alliebaba · 01/03/2006 19:22

as long as the mortage is paid if you pop your cloggs, then i'm happy.. this costs us £12.23pm

notasheep · 01/03/2006 19:49

I have critical illness cover-costs me £24 a month.The pay out is £50,000

pacinofan · 01/03/2006 20:08

We both have critical illness, not entirely sure we 'need' it but I couldn't afford private health insurance (dh has his provided for by employer) and critical illness cover seemed a sensible option instead. We also have life insurance.

We do not have mortgage protection insurance but we are lucky in that we have a relatively low mortgage. What we do instead is keep enough money in savings to live off for approx 6 months should dh ever become unemployed (shudder)!

mcmum · 01/03/2006 20:24

starlover,

hi ya my dh is an IFA and he would say def life assurance and critical illness, we are well covered as you can imagine, but my bf has breast cancer and wasnt didnt have cover she now can't work and was main earner. good luck speak to your mortgage advisor he/she should point you in right direction Smile

Original poster
starlover · 01/03/2006 20:27

yeah i mean in terms of unemployment dp should be able to get a job pretty quickly...
but what if he is unable to work due to illness? does critical illness cover just pay out a lump sum? does it pay the entire mortgage off? or will it pay a bit a month?

OP posts:
mcmum · 01/03/2006 20:30

critical illness is generally a lump sum im being told by dh ! Smile he has his uses Grin

Original poster
starlover · 01/03/2006 20:32

hmmmmmm it's a difficult decision to make!

OP posts:
mcmum · 01/03/2006 20:34

if you need to ask anything i will let him out of cupboard lol to answer ha haha ha he is happy watching england game !

mcmum · 01/03/2006 20:57

hav u gone starlover dh is back if you need to ask feel free

amabitchbutonlywhenincognito · 01/03/2006 20:58

This reply has been deleted

Message withdrawn at poster's request.

Orinoco · 01/03/2006 21:54

Hi Starlover, if you want it for peace of mind, shop around to see if you can get it cheaper (or even buy the different parts from different companies). An IFA could help you - although I'm impartial for mortgages I'm tied to NU for insurance, so I can't!!

Blondeinlondon · 01/03/2006 21:56

used to have cover with work but now I don't have any
will prob get some life cover soon

foxinsocks · 01/03/2006 21:57

we have life cover (should think most people need this!) and critical illness

you need to think what sort of financial position you want your partner to be left in (and vice versa) if you peg it or get a serious illness

one word of caution - critical illness excludes quite a lot of illnesses so read through the policy thoroughly before you decide whether it's worth it

foxinsocks · 01/03/2006 21:58

dh only has life cover and some sort of sickness cover through work

JenJam · 01/03/2006 21:58

thanks for reminder!

marytee · 02/03/2006 11:57

We have both critical illness and life insurance to cover the mortgage. And then a small income replacement policy that also pays out in both cases. This nowhere near covers either of our incomes, but would just about pay childcare costs each month. I have an NHS pension that also pays a one off payment 3 times annual salary if i die.

My dad died when i was 13. He did have some life insurance, which my mum used towards buying a house at the time. Not sure what we would have done without Sad - a very tough time would have been even harder. I don't feel we've got enough cover at the mo, but hope to increase as we earn more.

CountessDracula · 02/03/2006 11:59

I have phi and about £400k of death in service both through work so luckily costs me nowt

CountessDracula · 02/03/2006 11:59

oh and dh has the same

Clary · 02/03/2006 12:00

we have cover for the mortgage of course and life insurance as well now that we have the children. £100k each. Plus we get something through our work pension if either of us dies (pension and lump sum).

acnebride · 02/03/2006 12:04

critical illness for me - insurance co won't cover dh - if we were both ill life wd be v tough. Actually not sure how much it pays and when, must find out!

life insurance for both of us, not sure how much again but it certainly pays the mortgage and gives lump sum.

A will.

NHS pension - must check it's not assigned to xh or something scary, doubt it.