Mortgage Decreasing-Term Life Assurance (MDLA) via Cavendish

m_thomp

Hi all,

I'm looking for some help. Myself and my partner have recently moved into our new home and we'd like to take out some Mortgage Life Assurance in the event of something happening to either of us.

I've read through Martin's instructions on his page and it all makes perfect logical sense when it comes to what products are the most relevant, and what options to choose (fixed premiums, get a quote for a joint policy and seperate ones and compare, put the policy 'in trust', etc).

He recommended Cavendish as the best broker to deal with and go for their fees payment option, rather than commission.

But when it comes to actually getting the quote online (via the Cavendish on-line), the form all gets rather confusing beyond the personal details - which I can happily fill in - to the extent I don't have a foggiest about what it's asking. Can anyone shed some light on the form, maybe put the options into laymans terms, because it's getting me in a right old tizz, certainly not the most instinctive form I've ever filled in. :mad:

Thanks in advance,

Mark

Money_Watch

Hi Mark,

Although the site isn't the best looking around, the form asks pretty standard questions - is there anything in particular you need help on?

Rob.

yak00

Money_Watch wrote:

Hi Mark,

Although the site isn't the best looking around, the form asks pretty standard questions - is there anything in particular you need help on?

Rob.

Maybe you could help me also ...

* I'm opting for 'Death ro Critical Illness cover' the addtion options then confuse me.. what do they stand for ?
* difference between premium driven and benefit driven ?
* I have a 25 year mortgage which is fixed @ 5.18 for 10 years.. what should I select as the interest rate ?
* Waiver of Premium? .. have an idea what it implies but not sure
* ... and finally difference between guranteed and reviewable

Thanking you in advance ;-)

dunstonh

Crikey. You sure you want to be doing this on DIY?

That is just about every option there which you are having problems with. Surprised you havent mentioned currentcosted yet although that will probably come after you get the quotes.

Im going to be rude and not answer as I have to get off the comp now and I dont have time to answer. Sorry.

dunstonh

Ok, now I have a chance. As I said, you need to start questioning whether DIY is right for you as you have queried nearly every option.

* I'm opting for 'Death ro Critical Illness cover' the addtion options then confuse me.. what do they stand for ?

Death is death. Critical illness is critical illness cover. Do you want one or the other or both?

* difference between premium driven and benefit driven ?

Do you want the quote to be based on premium or on the level of cover

* I have a 25 year mortgage which is fixed @ 5.18 for 10 years.. what should I select as the interest rate ?

It depends on whether that information is required as part of the insurance quote to set a maximum tolerance in interest rates or whether it is to show a mortgage plus life cover quote. If maxium tolerance, then the default should be high. Many providers now automatically set a maximum tolerance but the rate varies between the providers.

* Waiver of Premium? .. have an idea what it implies but not sure

payment protection (accident/sickness) for the life assurance.

* ... and finally difference between guranteed and reviewable

One is guranteed premiums, the other is reviewable premiums. Guranteed is best but usually more expensive. You may also come across currentcosted/yearly renewable term which is an annually set premium. Looks cheap initially but increases annually.

Other options you should have, assuming the quote portal you are using allows those options and doesnt have them turned off, is budget or comprehensive CI cover and terminal illness inclusion. Whilst advisers would nearly always quote comprehensive and include Terminal Illness, quote portals often turn these off to lower their premiums and make them look cheaper.

yak00

dunstonh.. thank you for the answers. re: DIY... I was making sure I understood all the terms correctly before I started comparing quotes. The only query you've mis-understood is with regards the addtional options (prob due the way I put the question ;-) ... What I ment by the addtional options was.. TPD, CIC and Comperhensive.

I'm leaning towards..
Life Assurance policy (death only + term decresing)
PHI (deferred for 3 months)
MPPI (unemplyment only)

Now have to find the right policies ;-)