Life Insurance

[fitzie79]

I recently sold my house with my finacee and am looking at building a new house over the coming 2 years. We had a mortgage protection policy that lapsed with the sale of the property.

As we don't have a mortgage at the moment we have no form of life insurance. Is it possible to get a new life insurance policy and at a later stage modify it to cover the new mortgage? If it is possible is it worth doing?

 

[ClubMan]

Moved from Other Financial Issues.

 

[ClubMan]

As we don't have a mortgage at the moment we have no form of life insurance.

Do you need it? If you have no dependents/kids then perhaps not. In any case it might be a good idea to keep mortgage protection life assurance and general life assurance cover separate and just get the cheapest decreasing term cover for the former.

 

[fitzie79]

hi clubman - sorry for posting in the wrong place - i looked around but didn't spot this forum

the reason i am looking for it is that if something did happen to either of us then the surviving person would get nothing - whereas 2 months ago they would have had a mortgage free house.

I was thinking that keeping mortgage protection and life assurance seperate would be a possibility but wasn't sure if this was the most cost effective method

 

[ClubMan]

I would suggest that you consider talking to a good independent life assurance broker/advisor to get some advice on what would be suitable for your specific needs.

 

[Ravima]

you should be able to get insurance on his life and he on yours as you both have an interest in the other. that way, in the event of a death, the policy proceeds are paid to the policyholder (survivor) rather than into the deceased's estate.

 

[PM1234]

While it is possible to do what you suggested ie take a flexible life policy which can later be amended to suit a mortgage, its generally assumed that keeping life and mortgage cover separate is a good idea while often being more cost effective. It provides for a partner in the event of death which may be more important depending on personal circumstances e.g. children and it also pays off any outstanding mortgage.

Life cover depends on personal circumstances. As already suggested it would really be recommended that you speak to a broker outlining your needs and costs to ensure you make the right decision for your individual needs.