Life / Mortgage Protection Insurance

Milky_Mocha

I have recently taken out a mortgage and the broker is about to sell me life insurance. As I know nothing about this I want to do some research before meeting him. He explained that there is a level term policy and a decreasing policy and that the policy will pay out in the event of death. I have life insurance from my employer of 4 x salary and I think I recall reading somewhere that one cannot claim from two policies. Is this generally true?

Secondly are there any good money saving deals such as use of discount codes like you can get with home / car insurance? The policy I was verbally quoted on a £345 joint mortgage is £40 per month level term. Does this sound great or is it just about average?

Thirdly, is the total amount usually paid when only one of us dies or will they only pay out half of the sum insured?

I will also need ASU cover. Is there a policy that covers both life and ASU? I'm hoping it would be cheaper to obtain a combined policy if this exists.

Final question, please. if we do not claim in say ten years and we cancel the policy will we get back a chunk of money? If we do not cancel but require a bit of cash is it possible to make a withdrawal against the policy?

Thanks for reading this. I look forward to your replies. I appreciate that all these answers can be answered by the broker but I don't think he would give me info about deals outside of his commission remit so I would be interested to hear your opinions / experiences.

bluep

Not sure about the specifics, but I have always heard from all sources that its best to buy independent life cover rather than go with broker/bank/mortgage company insurance....feel free to correct me if I'm wrong....

Didn't Martin Moneysavingexpert write something on it here:

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1099917811,37970,

poppy_f1

Milky_Mocha wrote: »

I have recently taken out a mortgage and the broker is about to sell me life insurance. As I know nothing about this I want to do some research before meeting him. He explained that there is a level term policy and a decreasing policy and that the policy will pay out in the event of death. I have life insurance from my employer of 4 x salary and I think I recall reading somewhere that one cannot claim from two policies. Is this generally true?

not true you can have as many policies as you want running for life cover

level term means the amount paid out stays the same throughout the policy, decreasing term means it decreases usually in line with the mortgage so if you died it would pay the mortgage off and just that, for any extra go for level term

Secondly are there any good money saving deals such as use of discount codes like you can get with home / car insurance? The policy I was verbally quoted on a £345 joint mortgage is £40 per month level term. Does this sound great or is it just about average?

not sure, i know direct line ask if you have other policys with them and possibly gives a discount but dont know of other providers

Thirdly, is the total amount usually paid when only one of us dies or will they only pay out half of the sum insured?

if its a joint policy on first death then it pay out the full sum assured on the first death and thats it, your cover would be gone

I will also need ASU cover. Is there a policy that covers both life and ASU? I'm hoping it would be cheaper to obtain a combined policy if this exists.

again some providers will offer asu cover within a life policy but would be separate (if that makes sense) discounts, im, not too sure off, really i'd find out what your companys sick pay scheme is

Final question, please. if we do not claim in say ten years and we cancel the policy will we get back a chunk of money? If we do not cancel but require a bit of cash is it possible to make a withdrawal against the policy?

Thanks for reading this. I look forward to your replies. I appreciate that all these answers can be answered by the broker but I don't think he would give me info about deals outside of his commission remit so I would be interested to hear your opinions / experiences.

endowments used to do this, however they would work out more expensive than normal life cover as there is an investment element in them

im in no way a mortgage advisor/broker, used to work for 2 life companies therefore i dont know about specifics and apologies if anything has changed