Life Insurance and House

LeoN88 · 4 Mar 2011 at 00:31

Now this will come across as being a little morbid but say for instance an individual who is working and young and still living parents, finds out that he/she has a life threatening disease and is given ex amount of months or years to live.

Would it be possible for them to get a mortgage for a house i'm assuming you don't have to give your medical status and then get life insurance for the house. Then would that house once the person has passed away be fully paid for if the individual is with another person and signed in the deeds and not working?

Weird question i know but just intrigued..

Rotty · 4 Mar 2011 at 00:33

you need life insurance as soon as you get the mortgage, when they find out that it was a pre exisiting condition then they would refuse to pay out

blueacid · 4 Mar 2011 at 01:02

Rotty said:
you need life insurance as soon as you get the mortgage, when they find out that it was a pre exisiting condition then they would refuse to pay out

Quoted for truth.

The mortgage company & insurers will want you to disclose any relevant medical details. Such as terminal conditions (Sadly

)

[FnG]magnolia · 4 Mar 2011 at 01:03

Is this hypothetical or a situation you're involved in?

stoofa · 4 Mar 2011 at 09:51

Rotty said:
you need life insurance as soon as you get the mortgage, when they find out that it was a pre exisiting condition then they would refuse to pay out

You don't need life insurance as soon as you get a mortgage.
There is no stipulation for insurance unless you have an endowment policy - which is extremely rare these days.

Most mortgage companies demand the property is insured, but as for you being insured - not a requirement.

But back to the OP - No, getting insurance after the diagnosis will not get you a payout.

[FnG]magnolia · 4 Mar 2011 at 09:54

I misread that as home insurance, not life insurance. You can't legally take ownership here of a home unless you have home insurance at the moment of property transfer.

LeoN88 · 4 Mar 2011 at 09:57

[FnG]magnolia;18595971 said:
Is this hypothetical or a situation you're involved in?

Hypothetical

cochoc · 4 Mar 2011 at 10:17

The only way to make this work is to take out life insurance before becoming ill and taking out a mortgage. (Although the mortgage bit is irrelevant really).

If you die, then BINGO! For your dependents/parents that is...

Rotty · 4 Mar 2011 at 10:20

stoofa said:
You don't need life insurance as soon as you get a mortgage.
There is no stipulation for insurance unless you have an endowment policy - which is extremely rare these days.

Most mortgage companies demand the property is insured, but as for you being insured - not a requirement.

But back to the OP - No, getting insurance after the diagnosis will not get you a payout.

has been when I have taken mortgages out, maybe something has changed

I never had to take it out with them but I have always had to have it, though I have been able to use the cover associated with my work pension

edscdk · 4 Mar 2011 at 10:23

if you get critical health insurance as part of the life insurance they should pay out before you die... or even better if you get a critical condition and get better they still pay out...

(you gotta read the small print though)

if you got really sick say a brain tumor and were unable to work, you could possibly live 2 - 5 - 10 years if you only had life insurance you could loose the house and have to live in the street, if you had critical health insurance they should pay after before you die (good if you have a young family and dont want the kids in a stinking coucil flat for the last few years of your life)

LeoN88 · 4 Mar 2011 at 11:27

cochoc said:
The only way to make this work is to take out life insurance before becoming ill and taking out a mortgage. (Although the mortgage bit is irrelevant really).

If you die, then BINGO! For your dependents/parents that is...

that was the point in asking the question

if ever i was in this predicament although hopefully not!

stoofa · 4 Mar 2011 at 11:45

Rotty said:
has been when I have taken mortgages out, maybe something has changed

I never had to take it out with them but I have always had to have it, though I have been able to use the cover associated with my work pension

All I can definitely say is that I originally took my mortgage out with the Halifax - House must be insured, you don't have to be.
I then transferred to the Cambridge Building Society where it was the same deal - House must be insured, but no requirement for life insurance.

A friend of mine had an endowment policy and part of the T&C's was that he must have life Insurance policy in place.

It's nigh on impossible for me to get life insurance these days as I suffered renal failure nearly two years ago.
I've not got a "countdown" to live - no reason why I can't live to 100 with transplants and dialysis.
Just makes the premiums really high if they will even take me on.

Rotty · 4 Mar 2011 at 11:56

stoofa said:
.

A friend of mine had an endowment policy and part of the T&C's was that he must have life Insurance policy in place.

.

That may have been it then as my original mortgage ( long ago ) was with an endowment policy

BennyC · 4 Mar 2011 at 12:12

You can get Mortgage Payment Insurance if you become unemployed or ill/disabled/unable to work. Though as it's a pre-existing condition you'd be told to lump it.

NotAGolf · 4 Mar 2011 at 12:44

Rotty said:
has been when I have taken mortgages out, maybe something has changed

I never had to take it out with them but I have always had to have it, though I have been able to use the cover associated with my work pension

Do you have kids? I think it becomes a bit more complex if you have kids as if you kicked the bucket what would happen to them? Obviously they can't pay for the house! If you're single then it's easy enough as the bank can just take back the house.

This is guesswork though, i'm not sure

Dutch Guy · 4 Mar 2011 at 13:16

If you have a terminal illness you will not get a life insurance, if you do not mention the terminal illness when getting insurance they will not pay out.