Life Serious Illness Cover & Life Assurance

[legoland]

Hi,
Im hoping someone can give me some advice. We have a policy that covers us for SIC and Life Asurance/Mortgage Protection and we currently pay €202 per month. As money is very tight I was wondering if wed be better going for a basic mortgage protection policy and me taking out income protection in the event of me getting sick?
Any suggestions much appreciated.

 

[StevieC]

The cheapest form of cover to keep your lender happy is a mortgage protection policy for life only on a decreasing basis. It unclear if you have a level or decreasing policy at the moment but if you have a level policy, changing to a decreasing one will give you an immediate saving provided you are happy to give up the additional cover a level policy provides.

Income Protection policies are good but not cheap depending on the deferred period you pick (how long out of work you are before benefits start paying). If you have sick pay from work (some employers give six months/or more/or less) then starting the deferred period from then can reduce the price. Also you may be eligible for tax relief on the premium for income protection which will further reduce the cost.

The only problem with income protection is that some occupations are not covered and depending on your occupation you can be charged more as some occupations hold a greater chance of getting ill.

It could work out cheaper for you but you are best off to talk to an independent broker who deals with all the companies that provide income protection to find the best price and see if it meets your requirements.



www.CheaperLifeAssurance.ie