HELP! Do I need Life Insurance with my mortgage?

delmac_2

HELP!

I put my house on the market over 6 months ago so I could move to a larger property, since then everything went belly up and I was diagnosed with Cancer which thankfully a week ago I was told has been cured! However we have also now sold our property (still good news!) and want to buy a property which we will have to take an additional mortgage out (£120000) The mortgage company have agreed the mortgage although the problem I have is that I cannot seem to find anyone to provide me with life insurance, so do i need to take it out if I have more equity in the property (value of the house we are buying is £275000 - £300000) than the amount we are requesting to borrow?

Any help grateful as we dont want to start incurrung fees on the sale if at the end of it I cant move!

Thanks

Del

Heth_2

As far as I can tell you don't need to take life insurance out, it is just there to help/protect your loved ones if something should happen to you. I know when my parents had their first house they didn't bother with life insurance till they had me.

rsykes2000

If the property is in joint names, then it may be a good idea, as if you pass away, your partner will be stuck unless they can afford the mortgage by themselves. Basic rule of thumb is if you have a partner or dependants, then life insurance is a good thing to have. If single and no kids, then you don't really need it.

herbiesjp

The question here is whether your past medical history will put you outside a life companies risk assessment, as to whether they want to offer you terms or not.

Without knowing your circumstances it is difficult to say whether you would be accepted

silvercar

Some of the large cancer charities may know of insurers that will look favourably on you.

I would think that the underwriters would look closely at your prognosis before making a decision. They would almost certainly load your premiums. The other option is to take life insurance excluding previous conditions , so you would have cover for everything except the particular form you had before.