Moving into a new build house plzzz help

kayleigh_notts

Hi all,

Me and my partner are moving into a new house within the next 3-5 weeks and as a young couple this is our first time of buying a house.... VERY SCARY TO SAY THE LEAST :eek:

We are both getting very confused and in a way scared of all the insurances that we may need but we do not know where to start, As part of our mortgage with nationwide they request that we have life insurance and we know that we must have buildings insurance...

i have done a qoute online for building and contents through nationwide and i was really pleased it came out at around £21 a month but i personalised and made it so we had accidental damage to contents and things like legal expenses covered etc etc

But the part we cant get our head round is the Mortgage protection insurance and the life with critical illness cover????? My partners job involves alot of driving he does around 1500 miles a week so can we get something to cover incase he has an accident?? also heart problems runs through his family... do we need to say this so that if anything does happen and we needed to claim would they payout etc etc??

I would really appreciate it if someone could so kindly help us out and any advice would be greatly appreciated too and taken onboard...

Kayleigh x

missile

Don't rush into taking out insurances you do not really need. Homecare, health care, dental health plans, pet insurance care, et al. No doubt many can site examples where they have benefited from having such insurance, but IMHO it would be cost prohibitive to insure yourself against every eventuality.

One hopes never to make a claim. You may feel comforted by having peace of mind. Only you can decide what is right for your situation.

PS: Enjoy your new home :j

1ST4COVER

KAYLEIGH

I would firstly get independent advice, or search the net as you will poss pay over the odds thru nationwide

If you elect to take critical illness disclose everything including family history, or get he insurance co to write to your partners doctor
Regarding his driving you may wish to consider income protection for him, also are you married as if something happens to u and you are not it may be a problem,the proceeds from life pols will be paid to family

stephenni1971

also are you married as if something happens to u and you are not it may be a problem,the proceeds from life pols will be paid to family

The proceeds of the life policy are paid into your estate, and are then distributed one of two ways

IF YOU MADE A WILL, they the estate will be paid out according to your wishes as stated in the will, so it's important to keep it up to date

IF YOU HAD NO WILL, there is a fixed structure as to where the estate goes, parents, brothers, sisters etc - BUT NOT PARTNERS...

So if you are taking out cover then make sure you have an up to date, accurate will.

Another option is to write to policy IN TRUST, this way the proceeds do not go into your estate, and the rules above do not apply. The funds are then distributed according to how you set up the trust initially. Also if the amount is large enough, writing a policy into trust can also help prevent unnecessary Inheritance Tax liabilities.

kayleigh_notts

Firstly thank you all for the advice so far its much appreciated....

We are only 22 and 23 years old and to be honest we really havent paid any thought whatsoever to a will... We are not married at the moment...

Im so glad you told me that if either of us did pass away that the other partner would not initially get the money to repay the mortgage i think thats stupid!!

We did get a quote from tsb there was a lady in there who explained about they use scottish widdows and the policy would be written up IN TRUST etc etc but i didnt really understand what she meant about the policy being written up in trust but now after the point you made above stephenni its quite clear now thank you so much. x

Please keep the advice coming about insurances we should get...

missile

When getting a will you need someone whom you know and trust. I would suggest you speak to the solicitor who is doing your conveyencing. When I moved house, my solicitor suggested that we update our wills and he did it for free.

If either of you should die, the bank account will be frozen and it can take a while for the beneficiaries to get money from the estate. Meanwhile you may have a lot of additional expenses and cashflow could be a problem. If you do not have a joint account, you might like to think about giving access to each others financial records via on line banking. Not in accordance with bank rules but ........... who would know?

I would check with the mortgage provider, you may find that the mortgage is paid off if either die. If not you might want to consider term assurance to cover it and at your age it would be inexpensive.

Critical illness and mortgage protection could cost a lot more, but (if you can afford it?) you might feel it is worth having. As with all insurance, check the small print. Many horror stories around where people found they were not covered when they made a claim.

stephenni1971

Kayleigh,

There are a whole host of insurance you can look at to cover pretty much any eventuality, however in the real world most people have to make choices as to how much cover they want - as all those premiums can add up to a sizeable amount...

Assuming you are on a repayment mortgage, then decreasing term insurance would provide a lump sum to clear the remaining balance if either of you were to die.

If you were worried about being unable to work for a period of time then MPPI would allow you to cover the cost of mortgage for a limited time ( usually up to 2 years ). You can have sickness/illness cover or include unemployment as well.

If you were wanting to be able to provide additional monies to the remaining partner should one of you pass away then you could look at an additional level term policy to pay out a lump sum.

You could also look at permanent health insurance which, if you are diagnosed medically unable to work will replace a %age of your income with a regular amount for until the end of the term ( so if you took 20 year policy now for £10k and claimed in 5 years, you would get the £10k for the remaining 15 years).

These are only very basic descriptions and there are a multitude of options to consider, indexation, waiver of premium, joint or single policies, trusts, qualifying periods, so you would be best going to an IFA, not someone in the bank or building society ( they will usually only be able to offer products from a single provider)

Kittian_the_Blue

Wilst slightly off the insurance angle, make sure that before you move in to a new build you get a proper snagging inspection done by a qualified surveyor - this shouldn't cost too much and will ensure that any defects are picked up before you move in - an average snagging inspection will pick up in the region of 75 faults - so it's well worth doing..

sandrah-t

kayleigh_notts wrote: »

Hi all,

Me and my partner are moving into a new house within the next 3-5 weeks and as a young couple this is our first time of buying a house.... VERY SCARY TO SAY THE LEAST :eek:

We are both getting very confused and in a way scared of all the insurances that we may need but we do not know where to start, As part of our mortgage with nationwide they request that we have life insurance and we know that we must have buildings insurance...

i have done a qoute online for building and contents through nationwide and i was really pleased it came out at around £21 a month but i personalised and made it so we had accidental damage to contents and things like legal expenses covered etc etc

But the part we cant get our head round is the Mortgage protection insurance and the life with critical illness cover????? My partners job involves alot of driving he does around 1500 miles a week so can we get something to cover incase he has an accident?? also heart problems runs through his family... do we need to say this so that if anything does happen and we needed to claim would they payout etc etc??

I would really appreciate it if someone could so kindly help us out and any advice would be greatly appreciated too and taken onboard...

Kayleigh x

Check out Sheilas Wheels for house&contents insurance,with accidental cover for both the quote was £132 for a year.