Is life insurance mandatory when buying a home?

lez5075

We are looking to buy our first home and our mortage adviser said its mandatory to take out life insurance (£20 per month) when getting a mortgage. Is this true? Can't we opt out? Is there an option to do this? Mortgage would be with ING Direct.

Thanks

betmunch

Its not mandatory at all! You are dealing with a Shark there. If hes prepared to lie to you about that what else is he lying about? Get rid, and complain about him. There will be details on how to do this on the IDD he should have given you

haras_nosirrah

compulsary - absolutely not... a good idea - yes as you say you are buying with a partner but I wouldn't do it through someone who is prepared to lie to you like that.

nick_

unless you're getting life confused with B&C insurance?

betmunch

nick_ wrote: »

unless you're getting life confused with B&C insurance?

Even then its only the Buildings thats compulsory

holly_hobby

Compulsory

Buildings Insurance - condition throughout the mge term - although the provider can be of your own choice.

Not compulsory - but highly relevant if buying with a partner or you have dependants you wish to protect

Life insurance - mge debt as a minimum, additional protection determined by family requirements

Critical Illness - can be combined with a LA policy - pays the GSA as a lump sum or diagnosis of a critical illness.

Income protection - PHI - help offset lost income during periods of extended illness, payable until recovery, death or NRA. (NB - ASU/MPA policies - only pay for a max term of 12 mths.

See an IFA re your life and income protection requirements (blds ins a search on the internet will bring up lots of comparison quotes, if you don't wish to use a general broker to source this for you).

Hope this helps

Holly

dunstonh

Some mortgage advisers require you to buy the insurances through them as part of the cost of using them. It may be compulsory as part of the cost of their service. However, as already mentioned, it is unusual to see life assurance insisted on nowadays (business lending still sees it from time to time)

holly_hobby

Mge lenders no longer insist upon life insurance , therefore the broker can not insist upon the pch of a policy, or that any provision is effected via themelves.

Of course their IDD must clearly state any compulsory product provision requirements, or alternate fee structure if the client wishes to effect their own provision, with other relevant fees and commissions.

H

dimbo61

Life assurance is still a very good idea to have as you never know whats around the corner ( I work as a paramedic )
If you take out a LEVEL term policy while young the cost is cheaper than the cost when in your mid 40/50,s
You dont say how much the life assurance is for or if its a joint policy but please protect yourself and loved one,s

northerner999

Life assurance is not mandatory. I have not got a policy out. I am remortgaging now and my broker very quickly agreed with me that it was unnecessary in my situation (single and no dependents). If you have kids or anything you should have it, if not then it's not a concern.

He very strongly made the case for critical illness cover (which I don't have at the moment), but also made clear that taking none of these extras would not see him turn me away as a customer. I've not had any extra cover before, but I'm beginning to feel more mortal as I get older!

mysk_girl

Neither OH or I have life insurance, but we both have very good death-in-service from work - might be worth checking that?