Life Assurance Policy and Tennants in Common

Wutang_2

s_glover wrote: »

Hi,

The dates of birth are 1/83 and 07/82, non smokers, mortgage amount £184,875 and 30 year term.

TIA

Not sure you should be relying on folk on here (no offence) or your bank - speak to an IFA who can assess your situation correctly. This is purely for guidance - not advice. You are not sure about how much life cover you have or how it works, go and speak to someone.

kingstreet

A joint mortgage protection plan for £185k over 30 years should cost just over £12 per month for your ages.

Two single life plans would be just over £15 per month.

If you have dependents, two singles may be a sensible approach, but then you'd probably look at decreasing cover for the debt repayment plus a level term or family income benefit for the family protection.

Banks aren't the best place to buy insurance cover. I'd find a good IFA and have a look at what you've been sold and why.

s_glover

Wutang wrote: »

Not sure you should be relying on folk on here (no offence) or your bank - speak to an IFA who can assess your situation correctly. This is purely for guidance - not advice. You are not sure about how much life cover you have or how it works, go and speak to someone.

Thanks very much. I wasn't relying on here for hard and fast advice just an idea of how it might work. We know we have enough life cover to pay off the mortgage I was just enquiring about putting the policy in a trust before we spoke to anyone else.

kingstreet

Wutang wrote: »

Not sure you should be relying on folk on here (no offence) or your bank - speak to an IFA who can assess your situation correctly. This is purely for guidance - not advice. You are not sure about how much life cover you have or how it works, go and speak to someone.

Sometimes a number can say so much more then mere words. Giving the OP a comparison will hopefully clarify the BS he's been fed by a bank.

None taken, by the way.

Wutang_2

s_glover wrote: »

If one of us dies, will the life insurance automatically pay off the complete mortgage or only half of the mortgage?

ok - well it just seems there have been some suggestions made and you're going with the 'advice' as opposed to speaking to someone who can assess correctly.

dunstonh

We have a joint mortgage and took out separate policies with the bank also as these were not more expensive than elsewhere.

Banks are typically the most expensive distribution channel going. Their life assurance plans typically cost up to 40% more than an IFA. Even when using the same insurer.

We were told that indiviual policies were always issued - should we be asking for these to be cancelle dand take out a joint policy?

The financial ombudsman service have been upholding complaints about single life plans against joint life needs unless there is sufficient justification (and the taking out of level term assurance plans when a decreasing term assurance should be used). A joint decreasing term assurance would be cheaper than two single life plans. Maybe not by a lot but it should still be cheaper. You cant really see any justification for two single decreasing term assurance plans to cover one joint debt.