Mortgage cover life assurance but no mortgage yet

southside_wolf

Hello all,

please excuse what I'm sure is a very noob question, but my wife and I are currently in the process of selling / buying a new home. For our new mortgage we will wish to procure a decreasing term life assurance product and are conscious of the implications of both the EU gender directive next month and the tax changes in January. We would rather get one now while they're cheap. Is it possible to buy a product prior to us having our new mortgage (we have a reasonable figure in mind for what we expect to borrow, but haven't sold our own home yet or identified one that we wish to purchase so obviously this is very much an educated guess).

Any help greatly appreciated, thanks.

ACG

Yes you can, if you get one with Guaranteed insurability option it allows you to increase the cover at the same rates on certain occasions (ie buying a house).

So if you were to buy cover, realise its a little short then you can look at increasing your cover on the old rates.

This is easy enough to sort out but not all insurers offer it so it might be worth speaking to a broker.

kingstreet

GIO confers the right to increased cover without evidence of health at normal rates, but AFAIK it's at the rates available at the time. ACG - are you sure about this;-

So if you were to buy cover, realise its a little short then you can look at increasing your cover on the old rates

ACG

Your right, sorry my mistake.
Thats pretty bad ive got that wrong!
Im putting it down to having proper man flu... and the fact its never really cropped up in any sales.

kingstreet

I've phoned all my clients and told them they can do this!

Just kidding.