Life assurance for mortgage.

Noble_Savage

mercmanricky wrote: »

Ok,


Edit that, i've just done a comparison on moneysupermarket.comm and the premium is only about £8 a month (worlds apart from the £35 a month the broker was recommending us)...for the sake of one days worth of diesel, i think we'll take it out!

Be careful to compare like with like.

The quote you've got from moneysupermarket is probably for simple life assurance - it'll pay out only if one of you dies. I wonder if the policy your broker was quoting for included critical illness cover (pays out if one of you gets a serious illness even if you survive)?

As Senior Paper Monitor says, dying is cheap, living sick isn't !

getmore4less

Check the cover you have with work.

Long term it will be potentialy usefull when family comes along.

As you say you can both cover it now independantly anyway and at your ages you would tend to move on with life at some point if one of you went.

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The real risk to insure is that one of you becomes criticaly ill and needs care.

Would you stick together and the healthy one give up work to do the caring.

Thats the one that most people overlook and in these cases a lump some is no good you need income.

If you would just seperate and leave the sick one to other family or the state then less of an issue.

mercmanricky

Right you are! it was not like for like, have enquired with the broker and his cover was for mortgage life assurance incl. critical illness.
The £8 /month was not including critical illness.
Using moneysupermarket.com i just got a quote of £26.86 a month.

That's a massive difference and honestly does make me wonder whether it's worth it.
Because i'm a senior sales manager for our family run business, i'll almost never be out of a job unless i really do get too ill to use a phone.
I know there is always a possibility there but the chances are (*relatively*) low as both sides of my family are all very fit and healthy (still have great grandparents on both sides.)

Maybe i should just stop being so flipping tight!

[Deleted User]

I'd recommend you take out life and critical illness now, while you can afford it and it's cheap. Once you get used to paying for it, you won't notice any more but you'll be covered. By the time you feel you should take it out when you're 40, it'll be a huge wrench to start paying the bigger premium.

I know it's annoying to pay for something you don't intend using. I've had both life and critical illness for about 13 years and I've made nothing out of it. Not so much as a heart attack, let along being run over by a bus. Typical of my luck. But at least it's there, and relatively cheap.

And on a serious note, covers me for ailments whch current policies don't. Illnesses which were life threatening a decade or so ago and so made the policy pay out, in some cases are now nothing more than an annoying couple of weeks in bed, so not covered under modern policies. So another reason to get in sooner rather than later.

mercmanricky

Even though we have a 35 year mortgage, we overpay the maximum 10% monthly and this will reduce the term to 25 years.
Should i take cover out for 25 years or 35 years?

opinions4u

mercmanricky wrote: »

Even though we have a 35 year mortgage, we overpay the maximum 10% monthly and this will reduce the term to 25 years.
Should i take cover out for 25 years or 35 years?

Again, compare the premiums first.

I'd be tempted to go for the longer term. Just in case life's little turns stop you overpaying. It may be that in 25 years your mortgage is repaid and your kids are in full time employment. At that point in time you may be happier having the choice to cancel or continue with cover.

getmore4less

mercmanricky wrote: »

Because i'm a senior sales manager for our family run business, i'll almost never be out of a job unless i really do get too ill to use a phone.

Maybe i should just stop being so flipping tight!

Maybe look at the company providing the insurance through a long term sickness policies that pay out if the employees are unable to work and perhaps some death in service cover as well for the life side of things

The company probably should have some employee cover for key employees.

These might be cheaper than doing personal cover, then you need some for the OH