Mortgage Life Assurance

scottishgirl87

We are due to start our first mortgage next month and had been advised to get life insurance for the mortgage. We were originally going through a mortgage broker, however, ended up applying directly for the mortgage as we were offered a better deal. Anyway, broker asked if they could continue to provide us a quote for life assurance which was fine. We have since been through the application for this and received a quote of around £33 a month.

I've just had a look on the MSE guide and using the comparison websites suggested there it's throwing up the same company as the broker but at around £10 cheaper per month. Does that sound about right?

We are 25 and 26, non-smokers and no known medical conditions. Mortgage is for £115,000.

ACG

It doesnt seem right to me.
There probably would be some difference between a broker and an online site, typically online would be cheaper - but you would hope a broker would set the policy up in trust which is probably worth the difference alone.

But a third off the price seems like a big difference. Is one guaranteed and the other reviewable?
Presumably they are both on a decreasing basis?

Difficult to say without seeing the quotes but it does seem quite a hefty difference on that size premium.

dunstonh

We have since been through the application for this and received a quote of around £33 a month.

That suggests you have seen an increase due to medical/occupation or other risk area disclosure as the normal method is to get a quote before application. Getting another figure afterwards usually happens only when underwriting put the price up.

You would expect an online quote to be cheaper but not by that much unless the mortgage broker was a tied agent of the insurer. An IFA or independent mortgage broker would normally be cheaper than a tied agent but still more expensive than a discount broker.

scottishgirl87

Thanks for the replies, I'm still struggling to get my head around what we need to go for.

I have checked and both quotes are guaranteed and both on a decreasing basis. Neither seems to be in trust. I work in admin and my other half in retail - neither particularly high risk.

I've done a fresh search on Cavendish today and it's now throwing up another company as cheaper. I'm conscious of the fact that the new legislation is coming in so really want to get this tied up soon.

I think I forgot to mention in the first post that I'm including Critical Illness in my quotes so does £25ish a month sound about right taking our circumstances into consideration?

dunstonh

I'm conscious of the fact that the new legislation is coming in so really want to get this tied up soon.

You have probably missed that boat. Most providers have already moved to unisex rates with the small number that havent requiring the applications in their hands by Friday.

I think I forgot to mention in the first post that I'm including Critical Illness in my quotes so does £25ish a month sound about right taking our circumstances into consideration?

Whilst life assurance is generally fairly easy to compare (you are after all only paying out on one event mostly - some exceptions apply), CI cover does vary a lot with the providers and you should not go by price alone.