Buying a house but need to keep the bills as low as possible for the first couple of months.
What's the most important mortgage protection to take out?
Life & critical illness, accident & sickness or unemployment?
Any advice is much appreciated.
2007-07-31 05:03:51 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Although Mortgage Protection is great, the cost runs fairly high.
IMO a term life insurance policy will be much cheaper for the same amount of money. Also your loved ones will have a choice to dispurse the funds as needed
2007-07-31 05:08:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I would suggest you have a look around for life & critical illness cover, you can get a lump sum payout which would cover your mortgage and any extra that you might feel would be worthwhile. I have got my life insurance with Norwich Union - i found they had the best to offer at the time.
With regards to accident & sickness and unemployment, i didnt bother with these. Im the same as you i wanted to keep the costs down. However i have a good employer so im not worried about sickness from work & if i do ever find myself unemployed i know that it wouldnt be for long.
At the end of the day there is no right or wrong to this question its just what you feel comfortable with.
2007-07-31 12:14:22 · answer #2 · answered by rie 83 1 · 0⤊ 0⤋
Any insurance that you purchase from the lender is WAY overpriced.
You should decline the insurance being offered by the lender, and simply take out some term life insurance.
You should also take out disability insurance that will pay you 60% of your income (tax free, so it's close to what you'd make at your job) if you become disabled.
Unemployment insurance doesn't make sense. It generally pays your mortgage payment only for a short time. You'd still lose your house anyway if you didn't get another job. Instead of buying this insurance, instead, take the money you'd spend on those premiums and put it in a savings account so you'll have an emergency fund to rely on if you become unemployed.
Your emergency fund should contain enough money to cover 3-6 months worth of EXPENSES. (Not necessarily 3-6 months worth of income).
2007-07-31 12:08:51 · answer #3 · answered by Scotty Doesnt Know 7 · 1⤊ 0⤋
depends, many go for critical only, as how can afford to be out of work, most policies dont pay out till after 30odd days,
2007-07-31 12:08:42 · answer #4 · answered by JOHN 2 · 0⤊ 0⤋
Impossible to answer.
It all depends on whether you think the chances of being seriouusly injured and unable to work is likely or not.
What support will your employers give you if you are long-term ill or injured?
2007-07-31 12:07:00 · answer #5 · answered by Marky 6 · 0⤊ 1⤋
Just level term *** cheap and does a good job
2007-07-31 12:10:36 · answer #6 · answered by FRANK W 2 · 0⤊ 1⤋
homeowners insurance
mortgage insurance (if you need it)
life insurance
medical / dental insurance
disability insurance
(some of these may be provided through your work)
good luck :)
2007-07-31 12:07:21 · answer #7 · answered by Blue October 6 · 0⤊ 1⤋