mortgage protection, advice please

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falabo

Registered User
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hi all,
sorry but I need some advice on this, all those types of insurance policies are double dutch to me, the situation is as follow:
- 2 guys buying a 2 bed apartment together
- first time buyers
- we will never have kids, for the obvious reason

Please what kind of cover would you advice for us to take? we have been offered many of them, some at crazy prices, including serious illness cover (50.000 if one gets a listed disease or cancer). we wonder do we need all of that or should we not go for the basic insurance called "mortgage protection decreasing term" that pays off the remaining of the mortgage should one of us dies.
I just feel like banks are trying to sell us the most expensive policy they possibly can and would like to get the right cover.
we were also considering getting the basic mortgage protection cover and in line with this, an income protection policy, should anything happen to us like a long term disease or cancer to be able to keep up the repayments on mortgage.

Thank you very much in advance for your help on this matter.
Fabien.
 
Have you read this thread? Unless you have specific requirements for something else you might be as well to opt for the most basic cover - i.e. joint decreasing term mortgage protection life assurance.
 
Yeah, probably better getting the simplest one - you can alway get PHI later if you think you require it - ie self-employed etc. For mortgage protection, I found www.labrokers.com hard to beat
 
Yeah - should have said that you should shop around for such a policy and a discount exectution only broker should be able to get you a good deal. Buying from your lender will most likely cost more.
 
can someone correct me if I am wrong here on a mortgage protection point:

today - buy an apt and take out the most basic decreasing term policy to satisfy lender requirements.
5 years from now buy a house - is it better to take out a new policy then on the house (5 years older :-() or is it possible to move the apt policy to the house as the house will be the primary residence then.

anyone any experience/advice on this?
 
When you buy another property then the mortgage amount and term will probably be different so you may need an additional or new policy. However if the existing policy offers sufficient cover for the required term then you may well be able to reassign it to the new lender/mortgage. I'm not sure if you can reassign an existing policy and take another one out for the additional amount/term that it does not cover. However chances are that basic mortgage protection life assurance will remain relatively cheap (assuming that you have no health problems) such that it is just as easy to take out a new policy.
 
Hi All

Would be interested to get peoples opinions on "switching your mortgage protection insurance yearly", to the various providers to continue getting the initial discount period.......... sort of a mortgage protection life insurance rate tart........:) In the same way you would shop around for buildings/contents insurance..
Could this be legal.
 
Several threads dealing with this sort of strategy already exist and you should be able to find them by browsing or searching. Perfectly legal as far as I know. However, don't forget that with each passing year you age and potentially develop health issues so your premium could take a jump gradually or suddenly. Also - there is no point in saving cents on the mortgage protection life assurance if you are losing euros by not being with the most competitive mortgage lender for your situation.
 
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