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Suggestions about Life Assurance related to a mortgage
Wanderer3
Posts: 3 Newbie
Okay then...
...I'm trying to figure this out, so thought it best to ask a wider audience for their opinions & suggestions....
...I currently have a 'repayment' mortgage....for X amount....(not sure if I'm supposed to say amount or not?)...
...I bring in the monthly wage and want to ensure all is well for my family 'just-in-case'...
...I also have a small issue with 'atrial fibrilation' (i.e, worst case scenario if not treated could be a blood clot and then a stroke, a very small percentage of it happening but one likes to err on the side of caution....and it is being treated)...
...I've assumed I should be considering Critical Illness Cover...but I'm not too sure about the best type of Life Assurance to also consider....
...which ever one I do decide upon, do I then base the time period of Life Assurance payments to match the length of time that we have agreed to repay the mortgage ?
...and in the event of the mortgage being paid earlier than planned, can a Life Assuarnce mortgage related scheme be ended without penalty ?
...I was curious to find out if any others here have been in a similar situation, and what did they find worked best for them....
...any feedback would be gratefully appreciated...
...thanks...
...I'm trying to figure this out, so thought it best to ask a wider audience for their opinions & suggestions....
...I currently have a 'repayment' mortgage....for X amount....(not sure if I'm supposed to say amount or not?)...
...I bring in the monthly wage and want to ensure all is well for my family 'just-in-case'...
...I also have a small issue with 'atrial fibrilation' (i.e, worst case scenario if not treated could be a blood clot and then a stroke, a very small percentage of it happening but one likes to err on the side of caution....and it is being treated)...
...I've assumed I should be considering Critical Illness Cover...but I'm not too sure about the best type of Life Assurance to also consider....
...which ever one I do decide upon, do I then base the time period of Life Assurance payments to match the length of time that we have agreed to repay the mortgage ?
...and in the event of the mortgage being paid earlier than planned, can a Life Assuarnce mortgage related scheme be ended without penalty ?
...I was curious to find out if any others here have been in a similar situation, and what did they find worked best for them....
...any feedback would be gratefully appreciated...
...thanks...
0
Comments
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...anyone ?0
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Okay then...
...I'm trying to figure this out, so thought it best to ask a wider audience for their opinions & suggestions....
...I currently have a 'repayment' mortgage....for X amount....(not sure if I'm supposed to say amount or not?)...
...I bring in the monthly wage and want to ensure all is well for my family 'just-in-case'...
Sensible enough...
...I also have a small issue with 'atrial fibrilation' (i.e, worst case scenario if not treated could be a blood clot and then a stroke, a very small percentage of it happening but one likes to err on the side of caution....and it is being treated)...
...I've assumed I should be considering Critical Illness Cover...but I'm not too sure about the best type of Life Assurance to also consider....
If you want to cover your mortgage and assuming it is a repayment type then the most suitable cover is normally decreasing term ie: the sum assured goes down over time roughly in line with your mortgage. Not sure about your medical issue but be aware the underwriting for life cover is less stringent than that for Critical Illness. There are many things which can affect your health that will have no bearing on your life expectancy.
...which ever one I do decide upon, do I then base the time period of Life Assurance payments to match the length of time that we have agreed to repay the mortgage ?
With any term assurance to choose the term to suit the need.
...and in the event of the mortgage being paid earlier than planned, can a Life Assuarnce mortgage related scheme be ended without penalty ?
Normally yes.
...I was curious to find out if any others here have been in a similar situation, and what did they find worked best for them....
...any feedback would be gratefully appreciated...
...thanks...
Few points to considerI am a Financial Adviser specialising in Mortgages, Protection, Health and Medical Insurance. I also write wills. All information posted on this site is for discussion only, and should not be taken as advice.0 -
Don't just think in terms of mortgage then. Think in terms of lifestyle. If those you leave will have bills of £2,000 a month and your mortgage payment is £500, simply paying off the mortgage and providing them with nothing else will leave them with severe difficulties....I currently have a 'repayment' mortgage....for X amount....(not sure if I'm supposed to say amount or not?)...
...I bring in the monthly wage and want to ensure all is well for my family 'just-in-case'...
I think you should consider life assurance, PHI cover and critical illness cover. Your condition will almost certainly lead to a higher premium though....I also have a small issue with 'atrial fibrilation' (i.e, worst case scenario if not treated could be a blood clot and then a stroke, a very small percentage of it happening but one likes to err on the side of caution....and it is being treated)...
...I've assumed I should be considering Critical Illness Cover...but I'm not too sure about the best type of Life Assurance to also consider....
Ponder the lifestyle point above carefully. If your morgage has 12 years to run, but your kids will still be dependent after this point, it may be that you need two policies - one to cover the mortgage term and another to cover the cost of maintaining a family - perhaps until the youngest child reaches 22 years old (end of a typical university course)....which ever one I do decide upon, do I then base the time period of Life Assurance payments to match the length of time that we have agreed to repay the mortgage ?
Almost certainly, yes....and in the event of the mortgage being paid earlier than planned, can a Life Assuarnce mortgage related scheme be ended without penalty ?
In summary, I can't stress enough how important I think it is to consider the full picture, not just the single bill of the mortgage. I would also consider insuring a non-working partner (if those are your circumstances). If your partner looks after the kids and dies, how will you pay for childcare? Would you be able to afford to go part-time at work? A lump sum or replacement income can help you to support your kids more successfully in that situation.0 -
....some good advice to think about....many thanks for taking the time to reply....0
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