About to purchase a property and need mortgage protection insurance - what would you

ButtUcks

We are a family of 5 (3 kids under 8yrs) & we are about to apply for joint mortgage protection insurance (reducing cover) for 285k.
The bank require this asap so that we can sign contracts, on the new property, at the end of June.

In the event of my death (nothing planned yet!!) I'd like to provide cover for my wife & kids and I was advised to consider taking out either a combined policy (level term cover with critical illness cover) or go a separate route such as taking out a reducing cover mortgage for the full mortgage amount and taking out an additional level term policy with serious illness for 100k.

What would you do??

coylemj

I would look at the term insurance to protect your spouse as being separate from the mortgage protection policy (MPP). You can switch MPP provider at any stage and you will get a quote based on the outstanding mortgage but as you get older the term insurance would get more expensive if you tried to switch so you really have to look at staying with the term insurance provider for the long term whereas you can chop and change the MPP provider just like you can with car and house insurance so I'd keep them separate.

MPP technically will get more expensive on a per €1,000 basis because you're getting older but as the outstanding balance is reducing, the two factors should balance out and the ability to shop around and switch provider means that you can make savings by changing.

Critical illness cover is another issue altogether and a part of the insurance business with a bad reputation because of exclusion clauses hidden in the small print and hard selling.

The_Morrigan

OP I would also suggest getting the option of cover in the event of involuntary unemployment...that has saved my ass in the last six months. It is often a tag on or extra but it is absolutely crucial IMO. This may have bearing on the type of PPI you opt for.