Life Assurance

poppysocks1

I have a question and hope somebody can help. I am getting a mortgage in principle today and need to think about covering the mortgage payment should anything happen (when we finally find a house!).

Through my work I have Life Assurance which will pay out 4 x my salary (but will be shared out so not specifically to cover the mortgage), and also Income Protection for illness/critical illness which pays out til I am 65 as long as I stay in this job so that is sorted.

I think I also need to take out a policy to ensure that the mortgage is paid off should I die, and found the details of Cavendish Online Level Term Assurance Policy where the level of cover remains the same and the quote for a joint policy was about £9 per month. The question i have is should something happen to me does this pay out the full amount of the mortgage, or 50%, or nothing, in which case is my parter (as jointly named on mortgage) responsible for paying it all off? Also as its an offset mortgage, if I have savings would these be taken in to consideration and used to pay off mortgage first then any difference made up by the cover?

Thanks, and is there anything else I should be considering having taken out the mortgage?

dunstonh

The question i have is should something happen to me does this pay out the full amount of the mortgage

If the sum assured is the same as the mortgage then it should pay out enough.

Why are you looking at level term assurance and not decreasing term assurance?

as its an offset mortgage, if I have savings would these be taken in to consideration and used to pay off mortgage first then any difference made up by the cover?

Its up to the surviving partner how they pay it.

is there anything else I should be considering having taken out the mortgage?

Have you really got critical illness cover through your employer as well as permanent health insurance?

poppysocks1

Thank you.

I am looking at level term assurance as we are doing an interest only offset mortgage, so paying interest each month, with the repayment amount going into our savings account and paying lump sums off yearly, so its not a repayment as such. However if i have misinterpreted it then please say!

I checked with my employer and I have life assurance and income protection, plus a good sickness policy. The income protection will pay out up to 75% of salary (less any disability benefits or anything) up til 65 years of age or til i return to work and is subject to a medical assessment. So I feel that this is covered. I did get this in writing as well by the way, rather than just assume and have just checked it again. I do work for a very good company with some good perks so this is one of the benefits.

Thanks for your help by the way.