Mortgage Life Insurance - Death v's Serious Illness

K

kiki17

Guest
We are taking out our frist mortgage and are being advised to sign up for death and serious illness cover as opposed to just death, is it standard practise to take out both or will death cover alone suffice? Thanks
 
There is no standard practice, it's up to you.

Basic mortgage protection is all the lender requires you to take out.

Some people like paying the extra for peace of mind.

Be sure to shop around. It is advisable not to buy your insurance from
your lender.

Price comparisons here
 
I would tend to favour Income Protection over Specified Serious Illness cover although the latter has its merits. Income Protection pays you an income if you are unable to work due to sickness or accident. Specified Serious Illness cover pays you a lump sum if you are diagnosed with one of the specified serious illnesses.

Reason I tend to favour Income Protection is that it will pay a claim if you are medically unfit to work for any reason. If you cannot do your own job for medical reasons, that's likely to be a valid claim. Virtually infinite number of possible illnesses covered. Specified serious illness cover will only pay out a claim if you get one of the illnesses on the insurance company's list - typically around 40 illnesses.

Liam D. Ferguson
 
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