1. Is life assurance the same as mortgage protection?
No, similar though. The cover on mortgage protection (MP) decreases in line with the mortgage. Life assurance covers a level amount for the term of the policy. MP is cheaper and is the minimum requirement to drawdown a mortgage.
2. Is mortgage income protection extra insurance to cover a case of redundancy?
Mortgage repayment protection protects against an inability to work for 30+ days due to involuntary redundancy or sickness/disabilty. Pays out for 12 months.(other exclusions apply).
Income protection is a different insurance, this will pay you up to 75% of your salary if you are unable to work due to sickness, injury or disability.
3. Would life assurance policy cover us both or just the one paying the mortgage (mortgage is in both names)?
Depends if it is a joint or single policy. If mortgage is in both names then cover will be in both names so you are both covered.
4. Would we be better off holding off on income protection for a couple of years. If both out of work wouldn't SW cover interest payments, nearly all of your mortgage in first year or so?
Depends on size of mortgage.
5. Bank is insisting we get contents insurance in addition to the apt block insurance. Could we just insure for really small sum, we estimate that our contents are worth less than 10k?
Bank should not be insisting on this, buildings insurance is all that's required.
If you qualify for SW, will it cover your mortgage repayments?
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