Mortgage Life Insurance Discussion

Debras_Angel

http://www.mozilla.com/en-US/firefox/

We have a whole of life plan with Legal and General which we have had for 10 years and we currently pay £42.55 per month.
The policy is sum assured for the first 10 years with a review thereafter, hence the big hike I assume.
The cover is £64,560 and was to cover our mortgage if anything happens to either of us, it does include for any terminal illness diagnosis as well.
We have now been advised that we need to pay an additional £51.13 a month to ensure the £64,560 cover and this will be reviewed again in 2009!
If we stick with the £42.55 per month we will only have cover of £33,992.
I’m assuming this could reduce again at the next review.
Also the £64,560 could reduce again at the next review I assume.
Anyway we are thinking of looking at a new policy instead of paying the additional £51.13.
The reasons being:
The mortgage is now £41,500
Hubby (57) has a company scheme where 3 x salary is paid out along with pension.
I am self employed and don’t have any other insurance cover. I also have some health problems of high blood pressure and crohns disease.
The crohns disease is already listed on the L&G policy as I’ve had this for 39 years (now 47).
I have looked at Cavendish and got some quotes at around £10 for level term assurance for 17 years for 60,000 (will cover mortgage and some over for funeral expenses etc) but from what I’m reading on here that once I have completed the forms that due to my health problems this could jump dramatically.
Any advice would be welcome.
Regards
Debs

dunstonh

I have looked at Cavendish and got some quotes at around £10 for level term assurance for 17 years for 60,000 (will cover mortgage and some over for funeral expenses etc) but from what I’m reading on here that once I have completed the forms that due to my health problems this could jump dramatically.

The quote assumes good health. Expect the premiums to increase. An adviser would be able to tell you roughly how much but it is unlikely that an execution only service would do that.

minimike2

Some of the info on this website boils my blood. This is one example:-


"Picking a good critical illness policy would take a doctor and financial nerd combined; so I suggest you're better off getting the mortgage term cover and an income protection policy - which does just that - protect your income from a range of eventualities"


How the hell can you publish a sweeping statement like that. Critical Illness cover is valuable insurance and to simply dismiss it with a sweeping statement like that, which can easily be interpreted as giving protection advice, is quite frankly irresponsible. You cannot recommend what anyone does without knowing them and thier circumstances.

Shame on you.

LiamTG

I am in the process of changing my wife's and my own life cover as we gave up smoking 14 months ago.

Currently we pay for a one policy each - as in two policies with critical illness cover. The value of the sum assured is £110k. We are 36 and 35 yrs respectively and in good health.

A new quote from our financial advisor came in at £45 (for my wife) and £53 (for me) totally just under £100 per month. I think that this is expensive. Surely a joint policy would be better and more affordable and of course would mean only one payment a month? One that would pay out if either of us died or fell very ill.

Any views guys?

Thanks,

Liam

minimike2

One would cost less, but you get half the cover. Depends on the difference in price if it makes it worth while having one joint one or two seperate.

If its a tenner, it might be worth having them seperate and having double the cover.....its its £30.....well then it might not be. Depends on your budget!

Essgeebee

My first post to a Forum...

9 years ago, I was sold life insurance linked to a new mortgage. Seemed like a good deal but I didn't take time to compare it with anything else... who has the time and the mortgage arranger was acting in my interests, wasn't he?? After 5 years, I discovered how little the same insurance cover cost - only 12% of what I had been paying - from Norwich Union (through Tesco).
I was incensed :mad: . :rotfl:

Well done for raising this issue. I've no problem with commissions for mortgage arrangers but clearly, some vastly overdo it.

Essgeebee

Ludders_2

Essgeebee wrote: »

My first post to a Forum...

9 years ago, I was sold life insurance linked to a new mortgage. Seemed like a good deal but I didn't take time to compare it with anything else... who has the time and the mortgage arranger was acting in my interests, wasn't he?? After 5 years, I discovered how little the same insurance cover cost - only 12% of what I had been paying - from Norwich Union (through Tesco).
I was incensed :mad: . :rotfl:

Well done for raising this issue. I've no problem with commissions for mortgage arrangers but clearly, some vastly overdo it.

Essgeebee

Welcome to the forum. Just one more step for you to take. If you think Tesco saved you money, read what Martin has to say about life insurance and mortgage insurance, then get quotes from his top three and save yourself even more money!! Good hunting!