couple of mortgage insurance question

bobula

good day all

newbie here.

ive just applied for my first mortgage and now thinking about life insurance etc

25 good health never smoked but do work in the oilfields and in unsavoury places (west africa,middle east and eastern bloc europe)

first question(which ive asked advisors on the phone and no one will give me a straight answer)

they quote low , i explain that i work in the oil industry world wide and they reply with the only question im allowed to ask is "are you a perminant uk resident" - which i am.

i assume due to my job being high risk ill pay through the nose - any oilfield engineers on here able to confirm ?

Second question

how do these things work if i change mortgages/providers at the end of the fix ? does it continue on or do i have to renew the policy again to suit the new mortgage or is it the value of the mortgage im insured for as oppose the mortgage? (presuming value doesnt change of course)

kingstreet

A1 - I suggest you speak to an Independent Financial Adviser and go through your travel and occupational issues so these can be put to the insurers in advance of an application. In this way, you end up applying to an insurer that will;-

- be prepared to accept you "ordinary rates"
- offer you the best terms, not just a cheap quote which goes nowhere

A2 - a policy is written for the life of the mortgage. When you move house or change mortgage lenders you can continue the existing plan and top up with an additional one for any extra borrowing, or if advantageous, you can replace the existing policy for a whole new one for the total cover you then need. Your IFA will review your cover with you to ensure the best approach is taken.

G_M

bobula wrote: »

good day all

newbie here.

ive just applied for my first mortgage and now thinking about life insurance etc

25 good health never smoked but do work in the oilfields and in unsavoury places (west africa,middle east and eastern bloc europe)

You do not give the most important information - do you have dependants? Married? Children? If not, why do you need life insurance?

I'm also surprised you do not get insurance via your employers for work in these places.....

bobula

i am not married but long term partner and planning a family in the near future

i have work coverage but it is at best adaquate - 4 x wage death in service and 6 weeks full pay / 6 weeks half pay before health insurance kicks in at 6 months @ 50% basic wage

which would allow us to cover payments but has a 3 month gap which would be made up by savings...obviously but it would be interesting to see what coverage would come in at as certain health conditions would prevent me from doing my job.

jackomdj

How about asking some of the people you work with? There must be people who have gone through this.

sonastin

bobula wrote: »

they quote low , i explain that i work in the oil industry world wide and they reply with the only question im allowed to ask is "are you a perminant uk resident" - which i am.

I wonder where this leaves them? If they allowed you to take out a policy as a permanent UK resident and then tried to avoid paying out at a later date claiming you had failed to disclose material information regarding your risk, I would think this stand point which their call centre staff seem obliged to take would trip them up considerably. I can't see any benefit in restricting the information that their staff can gather as you are actually obliged to notify them of material facts.

But regardless of that, IFA is definitely the best way forward...

bobula

most folk in my office in my end of the work chain are renters holding off for the cushy office job before they mortgage - the others thought work covered it through the info i suppled above.

ill go see an ifa you are right - i just wanted to make sure i was being right in that the call center folk were wrong as essentially its withholding info and eventually just deception/fraud