Do I need all this insurance?

Q We are first-time buyers and we bought our house six months ago. When agreeing the mortgage we also took out personal income protection policies, mortgage payment protection policy, and mortgage protection plan with critical illness benefits.

Altogether, this is costing us £150 a month. Do we really need all of these insurances? If we do, where is the best place to find a cheaper option?

MH

A You may not need all or any of those insurance policies. But then again, they might provide just the kind of financial lifeline you need in times of trouble. For example, the mortgage protection plan is a form of life insurance which will provide a lump sum to pay off the mortgage if you die which means that the surviving partner wouldn't have to meet the whole mortgage without the help of your income. But if coping without your income wouldn't pose your partner a problem (and vice versa) life insurance might not be necessary.

The other policies you have are designed to pay your mortgage (and possibly other outgoings) if you are unable to earn because of sickness or, in the case of the mortgage payment protection policy, unemployment. But you may already have this kind of cover with your job in the form of a decent sick pay scheme and/or redundancy package so paying for your own policies may be an unnecessary expense.

But even if it turns out that it is worth buying your own cover, the chances are that, if you bought your policies from your lender, you are paying over the odds for them. So it would be worth getting in contact with Life Search (0800 316 3166) which can provide both more competitive quotes and independent advice on the kind of policies that are most suitable for you.