Life mortgage protection / life assurance policy

C

cathkc

Registered User
Messages
2
Hello
A question please about mortgage protection please.
My husband owns a property, purchased before we were married, and he has a single mortgage protection policy on this property which is assigned to a lending institution. It's costs him 22 p/m
If we wanted to have me covered with mortgage protection on this property but we cannot add me to his current policy given it's a single decreasing mortgage protection policy should we:
1. Have Me taking out a single mortgage protection policy for this property @ 13p/m,
2. Have My husband switch providers and take out a new joint mortgage protection policy with me at 26p/m
3. Something else?
The cheaper option is to switch to a joint policy, but it strikes me cheaper may not always be best in cases like this.
Any thoughts or suggestions much appreciated
C
 
Looking at your figures I'm wondering if he had to pay more for his policy due to health issues or some other factor? Can you check this? Also probably best for him to ask his insurer to confirm the benefits and premium on his policy and on receipt of his request they can do this in writing. The policy he already has may include options you are not aware of hence your decision to take out a new (death only I assume) policy may not be offering the value it appears to be.

3. Something else - might be use the spare cash to accelerate the repayments on the loan and clear it earlier if you can.
 
As Sumatra said, you should check for any loadings on the previous policy but to be honest every week, I come across customers who bought policies from their banks that cost a fortune compared to what they can get purchasing a new policy now for suitable cover for their needs. Sometimes they have been sold expensive whole of life policies instead of mortgage protection cover, most times the bank was just tied to one insurance company who wasnt/isnt the cheapest in the market.

Sometimes the cheapest is the best especially for mortgage protection purposes. If you feel you need additional cover, in my opinion its better to take out a level term/guaranteed whole of life policy separate to your mortgage protection policy. The reason for this is because as your get older there is a greater chance something may happen you and a decreasing mortgage protection policy is not really the way you want your additional cover going as you get older.

All things being equal and assuming acceptance at standard rates a joint life policy will be cheaper than two single life policies (only 1 policy fee instead of 2).
 
If ALL you require is a reducing mortgage protection on death of either of you, I suggest get the cheapest cover.
If you both require/want more cover Steviec,s advice is good. BEWARE of the so-called addons on any p0licy and make sure any extra cover does what it CLAIMS not what you THINK it does.
 
The question relates to replacing an existing policy with a new one. cathkc has not given us enough information about her husband's existing policy. Until cathck comes back with further information I think we should hold on to our thoughts least we misdirect her or some other reader in a similar situation.
 
Sumatra said:
The question relates to replacing an existing policy with a new one. cathkc has not given us enough information about her husband's existing policy. Until cathck comes back with further information I think we should hold on to our thoughts least we misdirect her or some other reader in a similar situation.
Click to expand...
SHE DID SAY (SINGLE ASSIGNED MORTGAGE PROTECTION POLICY ON HER PARTNER}..
IS IT NOT SAFE TO ASSUME THAT POLICY COVERS HIM AND HER ISSUE IS HOW MUCH MORE SHE SHOULD/COULD/WOULD HAVE?
I would HATE to mis-direct anyone.

Cheers.
 
I recently switched providers for Life Insurance. I was previously with Zurich and the policy was for a 30 year term with 5 already lapsed and 25 left.

The policy I replaced it with was for slightly more coverage and 10 years longer, i.e. 35 years. The premium was actually about 5% lower than the old policy despite being worth significantly more due to the longer term.

I don't really need the coverage for the longer term (not for my current circumstances) but took this purely for minimum premium reasons.

The company I used was and I can't fault them. I did need to provide a blood sample for underwriting purposes but that was down to the insurance company itself as opposed to the broker.
 
She did say he took out a policy a number of years ago for €22 a month? She did say new joint policy for €26 a month? Smell a rat????
 
Sumatra said:
She did say he took out a policy a number of years ago for €22 a month? She did say new joint policy for €26 a month? Smell a rat????
Click to expand...

I'm not sure if this post is related to mine above or not - I just glanced over the post in caps and didn't really take the time to 'take in' what they were trying to say (god, I hate all-cap posts :) ).

I'd have thought that you could reasonably expect €22 a month for a single person and €26 a month for a joint policy to be entirely down to small changes in underlying rates over the years and the fact that a single joint policy usually works out cheaper than two single policies (if not, always).

I didn't get the impression that the difference was down to the choice of provider but just thought I'd chime in with my recent experience. For the record, I have no connection with the LowCommission website apart from being a customer.
 
Not at all ronaldo :) I know what you mean and I'm glad you got sorted out but in cathkc post I think we are missing some pretty vital information and because of that we can't really make a recommendation. Perhaps if cathkc came back to us we could give provide a meaningful reply to the question she asked.
 
Cathkc - Just remember that if you are to switch to a joint decreasing term plan for you both you need to ensure that in the event that you are not paying the capital element of the mortgage (not unheard of these days) that you switch the plan to a level plan. In other words make sure the capital element is always protected.

Im a Financial Broker
 
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