Life assurance for someone not on mortgage

poozer140604

I'm a FTB whose offer was accepted today. While only my name will be on the mortgage & deeds of our new flat (hubby has a criminal conviction & poor credit history & will also be going freelance in a year), we love each other! & will be living in the property together.

Mortgage details
Purchase price 175000
Mortgage amount 145000
25 years mortgage
Interest only (but will change to repayment asap & putting money aside meanwhile)

My details
30 years old
Non-smoker

Should I get life assurance to the full value of the mortgage & critical illness cover? Can & do I put my husband on the insurance policy as well? He'll be earning money & contributing to our expenses even though he's not on the mortgage & if I die he would obviously still stay in the flat.

PS Many thanks to the many great tips from Martin & countless others on the dozens of threads I've trawled! You have all been a great help! :T

dunstonh

life cover is independent of the mortgage.

If your husband was to die, would you be financially worse off? If yes, you need cover. If no, you dont.

poozer140604

Sorry now more confused....

I'd like hubby not to have to worry about paying the mortgage payments should I die or get sick & can't work. He has a steady income now, but won't in a year's time.

Since we have an interest only mortgage at the moment, I can't take out Mortgage Decreasing Term Life Assurance OR level term assurance right?

So I THINK what I need is Mortgage Payment Protection Insurance for both of us this year, & maybe take his name off the policy when he stops earning next year (it'll only be for while)....am I wrong?

dunstonh

Since we have an interest only mortgage at the moment, I can't take out Mortgage Decreasing Term Life Assurance OR level term assurance right?

The mortgage is one thing, the life cover another. The two things are not linked. However, with an interest only mortgage, level term assurance would be the sensible option.

So I THINK what I need is Mortgage Payment Protection Insurance for both of us this year

thats well down the pecking order of needs. Certainly below life cover.