Mortgage/Life insurance

Liam · 8 Mar 2010 at 15:57

Hello,

Just going through with our first sale of a house. I'm trying to research into the different types of insurance/protection etc.

Mortgage advisor is trying to push Life Insurance but I want to keep the cost to a minimum at the moment. I DEFINITELY want mortgage protection/insurance incase one/both of us fall sick/unemployed etc.

Anyone recommend me anything?

Thanks

Knubje · 8 Mar 2010 at 16:01

Bummer said:
Hello,

Just going through with our first sale of a house. I'm trying to research into the different types of insurance/protection etc.

Mortgage advisor is trying to push Life Insurance but I want to keep the cost to a minimum at the moment. I DEFINITELY want mortgage protection/insurance incase one/both of us fall sick/unemployed etc.

Anyone recommend me anything?

Thanks

I'm in a similar boat to you, recently purchased house, etc, etc.

From personal experience & research, Life insurance is good but I haven't taken any yet as I'm young and invincible. Maybe when I have kids I might consider it more seriously.

As for mortgage/job insurance, it reeks more of scam than those emails you get sent from Africa asking to send all of your personal details across in return for a % of 10,000,000 USD.

In all seriousness, it can work and it is peace of mind. More often than not I have heard many bad stories. Lots and lots of small print, be sure you know exactly what you are paying/signing for before taking it out.

Examples being; not paying out until 6 months of unemployment, won't reactivate the policy for a year after you get back to work, etc.

Swings and roundabouts and often you don't end up any better off. I just use the extra money on savings.

Liam · 8 Mar 2010 at 16:04

Knubje said:
I'm in a similar boat to you, recently purchased house, etc, etc.

From personal experience & research, Life insurance is good but I haven't taken any yet as I'm young and invincible. Maybe when I have kids I might consider it more seriously.

As for mortgage/job insurance, it reeks more of scam than those emails you get sent from Africa asking to send all of your personal details across in return for a % of 10,000,000 USD.

In all seriousness, it can work and it is peace of mind. More often than not I have heard many bad stories. Lots and lots of small print, be sure you know exactly what you are paying/signing for before taking it out.

Examples being; not paying out until 6 months of unemployment, won't reactivate the policy for a year after you get back to work, etc.

Swings and roundabouts and often you don't end up any better off. I just use the extra money on savings.

I take it its something you can take out at a later date? Just need to get settled first really. Thanks for the quick advice and you not replying with the usual WWW.MONEYSUPERMARKET.COM

Knubje · 8 Mar 2010 at 16:08

Bummer said:
I take it its something you can take out at a later date? Just need to get settled first really. Thanks for the quick advice and you not replying with the usual WWW.MONEYSUPERMARKET.COM

You can start Life Insurance when ever you want. It's not a mandatory thing. The only thing you MUST have when buying a house is building insurance. Everything else is optional, take it out now or in 10 years time (assuming you are healthy and not expecting to die, etc, etc)

MSE is another good place to ask, I should have put that in my original advice.

On the whole life insurance is a good thing I think, especially with peace of mind if you have a family to look after and all that jazz. Mortgage/job insurance is a big pile of steaming faeces that I have chosen not to bother with.

Liam · 8 Mar 2010 at 16:10

Knubje said:
You can start Life Insurance when ever you want. It's not a mandatory thing. The only thing you MUST have when buying a house is building insurance. Everything else is optional, take it out now or in 10 years time (assuming you are healthy and not expecting to die, etc, etc)

MSE is another good place to ask, I should have put that in my original advice.

On the whole life insurance is a good thing I think, especially with peace of mind if you have a family to look after and all that jazz. Mortgage/job insurance is a big pile of steaming faeces that I have chosen not to bother with.

Haha

thanks for the advice mate and I might just take it. Buildings and contents would be a good start for me I think. I'll check MSE later on and have a peek. I've got car insurance with More Than so I might give them a call and see what they can offer me. BTW, what mortgage/insurance did you go for and at what rate? If you don't mind me asking

matt_fsr · 8 Mar 2010 at 16:11

Our mortgage has a clause in that you have to have compulsory life insurance, so that they get paid in the event you snuff it. Seems fair enough to me.

It's costing me just over £10 per month, so it's not something I worry about really.

Knubje · 8 Mar 2010 at 16:15

Bummer said:
Haha thanks for the advice mate and I might just take it. Buildings and contents would be a good start for me I think. I'll check MSE later on and have a peek. I've got car insurance with More Than so I might give them a call and see what they can offer me. BTW, what mortgage/insurance did you go for and at what rate? If you don't mind me asking

Well my mortgage was with some first time buyer deal through abbey. I went with their insurance for buildings/contents for the first year just because it was easier than sending off extra insurers paperwork (need proof it's insured before exchange).

Not a great deal but it saved us hassle as our house purchase was a lengthy, pain staking one anyway. Shop around is the key. After the year is up with Abbey I am definitely moving on as the rate we are paying isn't great, however, it was worth it for simplicity for us at the time.

Don't forget, as a new home owner, signup to Quidco or the other variation site. You'll be spending a lot of money on contracts, insurances, electrical goods, etc. Always worth reaping back some of what you sow

Liam · 8 Mar 2010 at 16:37

Knubje said:
Well my mortgage was with some first time buyer deal through abbey. I went with their insurance for buildings/contents for the first year just because it was easier than sending off extra insurers paperwork (need proof it's insured before exchange).

Not a great deal but it saved us hassle as our house purchase was a lengthy, pain staking one anyway. Shop around is the key. After the year is up with Abbey I am definitely moving on as the rate we are paying isn't great, however, it was worth it for simplicity for us at the time.

Don't forget, as a new home owner, signup to Quidco or the other variation site. You'll be spending a lot of money on contracts, insurances, electrical goods, etc. Always worth reaping back some of what you sow

Ours is through Natwest at the moment although nothing is finalised. Such a mine field with all these fee's and what not

Knubje · 8 Mar 2010 at 17:00

Bummer said:
Ours is through Natwest at the moment although nothing is finalised. Such a mine field with all these fee's and what not

Yeah I understand that, from my limited research things now apposed to 6 months ago have changed a fair bit.

At the time for us there were probably only a handful of lenders offering us a reasonable deal as first time buyers anyway. So the choice you have is limited anyway.

If you have any questions or anything, feel free to email my trust. I'm no expert or anything but have recently gone through it all after learning it all for myself and asking questions so I might be able to help!