new house - life cover

leigh_boy

leigh_boy

leigh_boy

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Joined
12 Sep 2012
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East Sussex
so the mortgage on the new house says we must have life cover, the morgage broker has out of the blue sent us a quote and its £43 a month. the mrs says this is high, i have no idea if this is good or bad. can any one point me in the right direction.

thanks in advanced
 
Depends what the policy includes and how much you need it to pay out? Is it simply life cover or critical illness too?

I've been doing life cover quotes recently and it's working out around £7 - £10 pm for a benefit amount of 100k.

You need to look at what the cover includes because most are rubbish.
 
I was getting £24 back with Aviva for Life and Critical Illness, but then again my benifit amount is less.

£7 - £10 was just for me, but it's a single person policy, we have other arrangments for the other halfs house.

I'm a non smoker with no health problems etc.
 
Are you sure you need life cover? Sounds like a sales trick to me. You need building cover only normally. I mean if you die etc then they can get the house.
 
We had to have life cover for our mortgage. Barclays didn't do a hard sell, but it was in their terms. The amount that you pay will vary hugely on the amount covered, if you have critical illness cover your lifestyle and your health. For example if you enjoy a cigar at Christmas they class you as a smoker and hike up the premium.
 
I was looking at re-mortgaging with Santander and that's one of things they ask for is evidence of life cover. When I took mine out originally RBS also wanted the same (I was covered through work at the time).
 
How much are you supposed to get life cover for? The full value of the house?

I just did a quote for £100,000 cover over 25 years and came back with prices ranging from £4.64-£8.00.
 
Plenty of mortgage companies do demand that you have life cover - but it doesn't have to be through them.
They also don't mandate critical illness cover, only life cover.

So if you're only interested in it to facilitate the mortgage, rather than because you want the cover, you could save money both by going elsewhere (use a comparison website) and by going for life only.
 
maccapacca said:
Anything through the broker will be lol cost.

Get a basic cover. What on earth are you going to care if and when you need to use it.
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because if only one of you dies the other will be left to pay off the mortgage anyway. Life cover will pay out and clear the mortgage so your other half has one less thing to worry about.

Most mortgages now insist on life cover, though you don't have to go through them for it.
 
Business Man said:
Your more likely to suffer with a critical illness than die. If you fell seriously ill and you couldn't work then you would be stuffed.
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How's that? You get a lump sum upon diagnosis (typically if you survive a certain number of days following diagnosis), irrespective of whether you then die, continue suffering, or recover. At least with the company I work for that's the case.
 
We used to have life insurance with Direct Line, were paying over £80 a month. Checked price of local brokers and they were all around £14 which is what we pay now (£200k+ mortgage).

Definitely shop around and of course pay the annual premium in one go if you can afford it as it should save on interest!

Business Man said:
Your more likely to suffer with a critical illness than die. If you fell seriously ill and you couldn't work then you would be stuffed.
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Some cover this as well - mine does and also am covered by my employer.
 
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