From: "Robin Graham" 
Newsgroups: uk.finance
Subject: Re: mortgage protection question
Date: Tue, 20 Jul 2004 18:46:31 +0000 (UTC)

> Life assurance pays out when you die. You will never gain any benefit
> from life assurance - it is of interest only if you have dependants that
> you want to look after after your death.

Correct


> My opinion:
>
> 1) Shop around for competitive cover if you need it. It is _very_
> unlikely that the mortgage comes with a competitive insurance quote.

Correct

> 2) Life assurance is worthwhile if you have family to support, else
> forget about it.

Correct

> 3) Payment protection is a waste of time. Use spare cash to reduce debt,
> save into an ISA or make over-payments on the mortgage.

A very blinkered view. Say insurance costs £25 pm. How long would it take
you to save the mortgage payments for a year at the rate of £25 per month if
you didn't take out the insurance? Is the peace of mind worth anything?

Rob Graham