Adamski Posted June 2, 2021 Share Posted June 2, 2021 (edited) I couldn't find a thread on this sort of thing, so I thought I'd start a new one. My partner and I are in the process of buying a house. We're looking into things like life cover, income protection, etc. Any advice on income protection? I know that the standard advice is along the lines of 'pay what you can afford', but it's something I've never had much cause to think about before, so it would be useful to know what constitutes a 'normal' amount. Protection against your full income? Protection against a percentage of your income? Enough to cover the mortgage? Or would there be a better way to make sure that we're covered if one of us died or got ill? We're both early 40s, in decent health, non smokers. Edited June 2, 2021 by Adamski 1 Quote Link to comment Share on other sites More sharing options...
latapythelegend Posted June 2, 2021 Share Posted June 2, 2021 21 minutes ago, Adamski said: I couldn't find a thread on this sort of thing, so I thought I'd start a new one. My partner and I are in the process of buying a house. We're looking into things like life cover, income protection, etc. Any advice on income protection? I know that the standard advice is along the lines of 'pay what you can afford', but it's something I've never had much cause to think about before, so it would be useful to know what constitutes a 'normal' amount. Protection against your full income? Protection against a percentage of your income? Enough to cover the mortgage? Or would there be a better way to make sure that we're covered if one of us died or got ill? We're both early 40s, in decent health, non smokers. Me and my partner bought our house just over 18 months ago. Our mortgage advisor basically explained what options would be most suited to us which included life insurance and income protection. Get yourself a good one and they should take you through the whole process as part of the mortgage application. I can't provide much advise personally I'm afraid. We ended up going with Aviva as we were told they were the best for both income protection and life insurance. 0 Quote Link to comment Share on other sites More sharing options...
Mallo_Madrid Posted June 2, 2021 Share Posted June 2, 2021 39 minutes ago, Adamski said: I couldn't find a thread on this sort of thing, so I thought I'd start a new one. My partner and I are in the process of buying a house. We're looking into things like life cover, income protection, etc. Any advice on income protection? I know that the standard advice is along the lines of 'pay what you can afford', but it's something I've never had much cause to think about before, so it would be useful to know what constitutes a 'normal' amount. Protection against your full income? Protection against a percentage of your income? Enough to cover the mortgage? Or would there be a better way to make sure that we're covered if one of us died or got ill? We're both early 40s, in decent health, non smokers. If you want life cover purely to cover your mortgage Decreasing Term Assurance will be the cheapest option. Income Protection is a little more complicated, it will only cover two thirds of salary. There will also be a deferred period on policies so its important to know what sick pay etc your work pays. Speak to a financial adviser. It won't cost you a thing to have a conversation with someone and there will be no obligation to go with their recommendation. 0 Quote Link to comment Share on other sites More sharing options...
MacDuffman Posted June 2, 2021 Share Posted June 2, 2021 We got the decreasing term assurance to cover the mortgage & my other half got the insurance. It was a while back but i think they said it would only cover one of us & I was in a safer job. I think she stopped paying this year as she was only covered for 20 years - we should be payed off by next year anyway. 0 Quote Link to comment Share on other sites More sharing options...
Wardy Posted June 2, 2021 Share Posted June 2, 2021 Going through something similar the now. We deal with a. Company called First Mortages who deal with all these kind of things in one go, mortgage application, life insurance and income protection. 0 Quote Link to comment Share on other sites More sharing options...
madwullie Posted June 2, 2021 Share Posted June 2, 2021 (edited) I got the serious illness and death cover, then 7 years later got cancer. Paid out no problem covering the remainder of my mortgage. Would recommend. I wasn't in a risk group and it came from absolutely nowhere. Don't think we bothered with income protection as we were both public sector workers and unlikely to lose our jobs mind. Dunno what I'd do if I had to do it all again. It was aviva we went with too on the recommendation of a financial advisor. Edited June 2, 2021 by madwullie 0 Quote Link to comment Share on other sites More sharing options...
Honest Saints Fan Posted June 2, 2021 Share Posted June 2, 2021 Definitely recommend speaking to a financial adviser. Check with your work too. See if they have any cover you can purchase. I have income protection, death in service and private health insurance all via my work. The cost for all is so little compared to if I purchased the policies myself. @madwullie I also had critical illness with Aviva and they paid out no bother when I was diagnosed. 1 Quote Link to comment Share on other sites More sharing options...
Adamski Posted June 2, 2021 Author Share Posted June 2, 2021 (edited) Thanks for the replies, everyone! Very much appreciated. We have a financial advisor who we have a good relationship with, but for some reason getting this info has been a bit less forthcoming. There's commentary around how it varies: I get that people's circumstances are different, some people do X, some people do Y, etc. However in getting my head around things like this I like a good bell curve: of course some people lie at the extremities, but I'd like to know what constitutes the top of the bell - what sort of % income or % mortgage repayments constitute 'average', and take it from there. Edited June 2, 2021 by Adamski 0 Quote Link to comment Share on other sites More sharing options...
madwullie Posted June 2, 2021 Share Posted June 2, 2021 1 hour ago, Honest Saints Fan said: Definitely recommend speaking to a financial adviser. Check with your work too. See if they have any cover you can purchase. I have income protection, death in service and private health insurance all via my work. The cost for all is so little compared to if I purchased the policies myself. @madwullie I also had critical illness with Aviva and they paid out no bother when I was diagnosed. I made a slight schoolboy error I have to say. Had bought my first house on my own, then moved in with the now wife to a bigger place we bought together. Sold the old gaff but forgot to tell the insurance people that the policy value really needed to go up. So although I technically paid off the mortgage of the old house I didn't have anymore, it didn't quite cover the new mortgage. Took a massive massive bite out of it though and let my wife be in the position where she could cut her hours if it came to looking after me, which so far it hasn't 0 Quote Link to comment Share on other sites More sharing options...
ICTChris Posted June 2, 2021 Share Posted June 2, 2021 We bought a new house towards the end of last year and while everything worked out in the end we were completely fucked about by our buyers, our sellers (the first house we tried to buy fell through due to the sellers pulling it) and our mortgage provider. Some utterly awful days, such as when our mortgage provider said they couldn’t process our application a week or so before we were due to move. Luckily we managed to get the single competent advisor in that day and he sorts it out.Our estate agent was also highly shady, she acted for the sellers as well. We took their offer as they met the value first and we didn’t want to f**k about but if I did it again I’d wait for first time buyers every time. One thing I found was that I quite liked it when things went terribly wrong as at least you could deal with it whereas most of the time we spent chasing and pushing to avoid things going wrong, which was far more stressful. 0 Quote Link to comment Share on other sites More sharing options...
Widge Posted June 2, 2021 Share Posted June 2, 2021 Can only echo what others have said, get a decent Mortgage/Financial Advisor and they'll point you in the right direction. Having just gone through it all 3 months ago on my first house it's certainly confusing to say the least at the start. Think my partner and I both have a combined life insurance policy and I've got income protection which I pay for separately; however my partner can't get a policy right now as she's awaiting medical appointments, etc to diagnose a long term issue. I've heard some utter horror stories from people buying their first house though, who've used a friend of a friend and ended up buying a place an not even having home and contents insurance set up, let alone income protection and life insurance to cover an unfortunate incident. If I'm ever asked for advice, in the future it will always be go with someone recommended and that you can trust who's got your best interests at heart. Got to say, with the way the market is right now, we were incredibly fortunate with how everything went for us and the way it landed. 0 Quote Link to comment Share on other sites More sharing options...
Mallo_Madrid Posted June 2, 2021 Share Posted June 2, 2021 We're contemplating putting ours on the market soon. (getting valued tonight). We need a bigger property. First time selling to buy and the notion I have for all the messing around and stress is at zero. I made the wife agree that she will deal with any viewings and the selling estate agent before I even consider putting it on the market. 0 Quote Link to comment Share on other sites More sharing options...
Adamski Posted June 2, 2021 Author Share Posted June 2, 2021 15 minutes ago, Widge said: Got to say, with the way the market is right now, we were incredibly fortunate with how everything went for us and the way it landed. We sold at the end of last year, and had our offer accepted on our new place a couple of months ago. The property market is bonkers at the moment. We thought we had done quite well out of it when we sold, only to have to go a fair bit higher as a percentage over value when we bought. 0 Quote Link to comment Share on other sites More sharing options...
Todd_is_God Posted June 2, 2021 Share Posted June 2, 2021 (edited) 21 minutes ago, Adamski said: We sold at the end of last year, and had our offer accepted on our new place a couple of months ago. The property market is bonkers at the moment. We thought we had done quite well out of it when we sold, only to have to go a fair bit higher as a percentage over value when we bought. Definitely. We'd like a bigger place, but the more I see the more I think extending is going to be a better option. We have a tremendous amount of room, I can't be arsed with the stress and hassle of buying, selling and moving in the current market, I like where we live, and the cost of the extension will likely be in the region of what we'd be looking to buy right now anyway. Anyone got any experience of financing a rather large extension? Edited June 2, 2021 by Todd_is_God 0 Quote Link to comment Share on other sites More sharing options...
TheScarf Posted June 2, 2021 Share Posted June 2, 2021 (edited) Bought my house a couple of years ago and the fucking estate agent was a lying wee hoor. A list of things she said that turned out to be utter shite include - 'Aww the street is so quiet here, there's never any cars come up it' - There's a turning circle at the bottom which is used by delivery men 24/7 (literally) and other road users alike. Indeed in the 2 years I've lived here there's been 3 prangs/crashes, all of which involved someone who didn't live in the street. It's by far the busiest street I've ever lived on, and I've lived in the City Centre before. 'All the appliances are great' - The cooker/oven didn't work, the electrics were totally fried. The shower also dripped constantly before I sorted it. 'The neighbours are really friendly'. The one joined on to me speaks once in a blue moon, the detached next to me I don't think I've ever seen the bloke who lives there and his wife I've maybe physically only ever seen 3 times. Directly across the road there's 2 houses who let their dogs bark all hours of the day. 'No issues with parking'. All the houses have driveways but you still get arseholes parked in front of my house, which I don't mind, except half the time the arse end of their car is over the driveway and I can barely get my car out. In short, 99% of them are fucking at it to get a sale and their commission. Edited January 17 by TheScarf 3 Quote Link to comment Share on other sites More sharing options...
Boostin' Kev Posted June 2, 2021 Share Posted June 2, 2021 8 hours ago, Wardy said: Going through something similar the now. We deal with a. Company called First Mortages who deal with all these kind of things in one go, mortgage application, life insurance and income protection. First Mortgage are decent if you're firm with them when it comes to not committing to add ons like income protection/critical illness etc if you don't want them. It's a free service and they have to make money so they push those products hard for the commission. 0 Quote Link to comment Share on other sites More sharing options...
Wardy Posted June 2, 2021 Share Posted June 2, 2021 35 minutes ago, Boostin' Kev said: First Mortgage are decent if you're firm with them when it comes to not committing to add ons like income protection/critical illness etc if you don't want them. It's a free service and they have to make money so they push those products hard for the commission. True. But quite happy to have all that as well for peace of mind. Working in retail I don’t really get great sick pay, but the wife is in the NHS so she doesn’t really need it. 0 Quote Link to comment Share on other sites More sharing options...
Andy Dufresne Posted June 2, 2021 Share Posted June 2, 2021 We complete the sale of my father in laws house on monday,we are lucky as we know the buyers and they in turn know are friends of their buyers. 0 Quote Link to comment Share on other sites More sharing options...
Honest_Man#1 Posted June 2, 2021 Share Posted June 2, 2021 2 hours ago, Boostin' Kev said: First Mortgage are decent if you're firm with them when it comes to not committing to add ons like income protection/critical illness etc if you don't want them. It's a free service and they have to make money so they push those products hard for the commission. Yeah we used them to buy our flat, and rejected all the add ons they tried to sell us, the boy seemed a mixture of gutted and baffled that I didn’t want any of them and was going to shop around. 0 Quote Link to comment Share on other sites More sharing options...
hk blues Posted June 3, 2021 Share Posted June 3, 2021 15 hours ago, Adamski said: We thought we had done quite well out of it when we sold, only to have to go a fair bit higher as a percentage over value when we bought. It's logical though isn't it? If you did well when selling, you're likely to be giving it all back again when you buy. 0 Quote Link to comment Share on other sites More sharing options...
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