# FTB, Life insurance, mortgage protection, what do I need?



## Neil_Ireland (8 Sep 2008)

Hi all,

I'm buying a house and I need to arrange life insurance/mortgage protection but I have no idea what is the best to go for.
I'm 32 years old, non smoker.

Do I need life cover and mortgage protection?
What are my options?

Thanks in advance.

Neil.


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## NorfBank (8 Sep 2008)

To satisfy your bank, all you need is basic mortgage protection if the purchase is of a residential property.
No mortgage protection is required for an investment property.


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## Neil_Ireland (8 Sep 2008)

NorfBank said:


> To satisfy your bank, all you need is basic mortgage protection if the purchase is of a residential property.
> No mortgage protection is required for an investment property.



Thanks, yes its a residential property.

Whats the difference between mortgage protection and life insurance, do they both pay the mortgage if I die?
What is the advantage of life insurance as my broker is pushing me to get this.

Thanks,
Neil.


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## LDFerguson (8 Sep 2008)

Do you have any dependents?

What reason is your broker giving for why anything more than the basic Mortgage Protection Life Assurance policy is in your best interest?


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## Neil_Ireland (8 Sep 2008)

LDFerguson said:


> Do you have any dependents?
> 
> What reason is your broker giving for why anything more than the basic Mortgage Protection Life Assurance policy is in your best interest?



No dependents, I'm single.
He has just pushed life insurance from day one, everything else is sorted for the mortgage (have loan approval). He has not given a reason for pushing life ins yet.

I have a meeting next week and would just like to know whats required for the mortgage and what else people would recommend.

Neil.


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## Blinder (9 Sep 2008)

All the banks will want is Mortgage protection.
This is term assurnace which decreases each year, as you pay of the mortgage. The idea is that there wil be enough to cover off the mortgage if you die.

Life cover is usualy level ( same amount throughout the term, or indexing, which increases each year by a certain amount.
It will generally cover your mortgage and anything left over will be part of your estate

Mortgage protection will be much cheaper.

You do not have to buy your mortgage protection from the bank or broker that is arranging your morgage. You should shop around. Check out the best buys for some online brokers.


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## LDFerguson (9 Sep 2008)

As you're single with no dependents, go for the cheapest Mortgage Protection life assurance policy you can find.  As Blinder suggests, check out the Best Buys lists here on Askaboutmoney.  Why would you want a policy that pays out more than your mortgage if you have no dependents?

You should probably investigate Income Protection to cover your income if you are sick, but that's entirely optional.  You may already be covered for this in your place of work.


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## Neil_Ireland (9 Sep 2008)

Thanks for the info guys!


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