Mortgage Life Assurance question

rdownes

I have had some great money saving from Martin's site. I am looking at changing my Mortgage Life assurance after starting the process of a remortgage for a greater sum of money. I notice from Martin's article that Life assurance is not essential.

My situation is that I am the major earner between myself and my wife and we have no dependents - all left home now!!

It seems to make sense to me to take out the insurance on my life only since I could continue to pay the mortage payments on my own - if the worst happened to my wife. However, she would not be able - if the worst happened to me!

Can anyone see any pitfalls in this approach that I do not see? Thanks

wolftastic_2

You must consider what would happen if your wife is no longer here, you may be able to continue working and pay the mortgage, but what about any income your wife brings in, or other contributions towards the household e.g. housekeeping etc, you might want to pay for a housekeeper for example.

You may want to insure your wife's life to cover these costs but you could save money by insuring for a lesser amount than the mortgage. I think it is very unwise not to insure for the full amount though, I can't think it would be a huge saving not to.

dunstonh

Joint life cover is not that much more expensive than single life anyway and at least you get guaranteed insurability in case of problems later on. Plus premiums are set on your current age and cannot be changed later (assuming you went with guaranteed premiums and not reviewable).

rdownes

Thanks for both replies. As it happens it was a huge difference. I got quotes through Cavendish Online. The best Joint was £42.15pcm and the best single was £14.49pcm.

My wife has a very low part-time income. I might have to tighten the belt or move to a smaller place but I can easily manage without her income.