What kind of insurance have you got?

I've recently moved and am having a bit of a trauma deciding what kinds of insurance to have. I've also had a few problems because of being turned down for an income protection insurance for a current unknown reason, I have chased this and am awaiting a reply.

So, I thought I'd host this poll and see how the rest of you cover yourselves for this yucky stuff!

Insured for everything mate. Death, critical illness, unemployment, buildings and contents and others but cant remember. Pay about £100 a month in premiums mind but better to be safe than sorry.

I voted life cover, although I mine does include critical illness. Opted not to go for income protection as, at 24 years of age, I'd like to think that should the worst happen and I lose my job, I'm able enough to get another one fairly quickly. Also, should I become unable to work due to an accident/injury, there's every chance of a compensation claim to keep me going. If I get ill, I'm covered with my critical illness.

Me too I have

- life and criticall illness cover for the full amount
- an small endowment (to cover a very small endowment part of the mortgage)
- Income protection against accident, sickness and redundancy
- Buildings and contents insurance

To get the mortgage agreed you must have had to have life cover in place already as an absolute minimum ?? didn't you?

I believe that's right yes, I hate the whole process though. Also I can't believe how much some of the premiums are coming out to be... sooooo expensive!

Is there an option for can't remember?

Depends on circumstances, family, kids, are you the main income earner etc, how lucky do you feel? (joking for the last one!)

Originally posted by Skatiechik
Is there an option for can't remember?


Nope! Have a search through all your documents then come back and vote... :D

(Okay, so maybe that's a BIT excessive! lol) ;)

Hi Briano,

Traditionally mortgage lenders did insist on life cover in place as it meant they did not have to mess about selling your house after your death to recover the debt.

However, most (if not all) now don't bother with this as far as I am aware.

As for insurance needs, it all depends on your circumstances, how much cash you have each month to sink into it, whether you think you could "manage" in various hypothetical scenarios and how protected you want to be.

I can't give "proper" financial advice to you (I am qualified to do so but this kind of public forum isn't the place), but I think you should go talk it over with an independent financial adviser who can.

As for being turned down for IPI, this could be for many reasons - insurers are, unfortunately. able to insure and not insure who they want. Do you have a steady income? Have you had much time off sick lately? Any health probs? These are the most likely causes but my advice would be badger the insurer until you get a straight answer.

Hope this helps

Saifa

Anyone who gets life insurance and has no dependants is a mug if you ask me. The rest is all about how much risk you're willing to take. I have building and contents only as that's a condition of the mortgage.

Agreed Tim,

Theres absolutely no point in that situation unless the mortgage company make you.

You can always get it later should your circumstances change

I have life insurance through work.
Don't have critical illness cover, i'll take my chances as i'm young and healthy.
The SO has life cover and income protection (which came in handy when she lost her job).
We don't have any dependants, but it does mean that should one of us croke it the other won't have to worry about paying the mortgage on their own.

I've got insurance that pays the mortgage and all my depts if I die, I'll never have kids so I didn't think anything beyond that was required. I do have a private pension but at the moment I don't know who would get that (if anyone).

Yeah, it seems pretty much the same all round really.
I just wonder if, in however many years time, when critical illnes cover or similar becomes more important the payments would just be too high... at least if it is taken out now, the payments will be lower and it'll last for life!

I'm just in the process of buying my first place and I didn't see any mortgages that demanded life insurance as a condition. The only condition I've seen related to insurance is to have buildngs insurance.

I think if you live alone and don't have kids there's no point in getting life insurance. I think I am going to go for income protection though. Again I am young and healthy, and I have never had a problem getting or keeping a job, but you never know what's round the corner!

[i] but you never know what's round the corner! [/B]

One thing I would point out is that you don't have to take the cover from your mortgage provider, and it can often be much cheaper if you shop around for protection.

We have life insurance, buildings and content insurance. My OH has income protection, which came in very handy when he was made redundant. Meant we were able to keep paying the mortgage and not worry about it and just get on with finding a job. OH only has it because of the industry he's in - it's very unstable.

Originally posted by Andy
One thing I would point out is that you don't have to take the cover from your mortgage provider, and it can often be much cheaper if you shop around for protection.

I don't think my mortgage provider does income protection, only life insurance. Actually I've found that not that many places actually provide income protection as a stand-alone policy, it always seems to be tied in with life insurance. Am I just looking in the wrong places? Can anyone recommend a company that provides income protection policies? The best I've found so far is Pinnacle - has anyone used them?

If you are on your own life insurance is a bit pointless. Critical illness is good because in this day and age you can make a full recovery from a critical illness and live for many years, so if you claim on the insurance your mortgage is paid and dont have to pay the money back! Sound great but if you never have a critical illness, then its pointless.

If you take critical illness the company i sell for give free life insurance.

Mainly two types of income protection. ASU (Accident, Sickness, Unemployment) will pay your mortgage monthly payment and a certain %, usually 25% for up to 12 months. This is ok, though can be pricey. If you work say NHS where redundancy will not happen and there is long period of sick pay then this insurance is pointless.

Other income protection provides mainly for long term sickness (though you can add unemployment) and starts paying after a deferred period, usually up to 12 months. So you would want this deferred until your sickpay runs out.

As i say to my clients the best insurance is the one you never claim on! (because it means you've usually had a healthy life!)

Regarding conditional insurance, its only buildings in this day and age. Too much competition for lenders to demand a life insurance. If a lender did, you would simply go do a lender that doesn't.

Finally, lenders insurance is usually more expensive.

Hope that helps!!

I've got life cover, but I'm probably going to cancel it as I plan to outlive my mortgage! As for critical illness and income protection cover, I'd avoid them like the plague. I don't think there are any good reviews to be had on either, and the CI cover is extortionate.

critical illness cover (like any insurance) is pointless unless you make a claim, then you quickly see the point.
My dad was diagnosed with cancer (made a full recovery), but the insurance on a car loan he had meant that it was paid off in full immediately. Unfortunately he already owned his house.