1 Mortgage, 2 Life Policies

[Unregistered]

Had a mortgage offer for X Euro. Started life policy for X Euro three weeks ago. Now, proceeding to buy for larger loan X+Y Euro. Planning to take out life cover for Y Euro with same insurer.

Anyone foresee the bank kicking up a fuss about the life cover being split like this (both will be suitably assigned)?

Is it likely the insurer will decide to revoke first and just issue one new policy?

 

[ClubMan]

The lender should not really care as long as the life assurance is for the appropriate amount and is correctly assigned. From your own perspective you should make sure that you get the bes value for money so shop around for a single policy in case that works out cheaper than two separate policies. You can then arrange the alternative cover and cancel any redundant policy.