Mortgage insurance/Life assurance

sophieboo

hello

just looking for a little bit of advice!

me and my partner are about to get a mortgage for our first home and have had all of the chat from our broker about mortgage life assurance. He has quoted us £33/month to cover us both for "life protection - mortgage protection assurance". This is for a value of £103k over 30 years. This seems quite expensive! We are both quite young, but i suppose you never know what cold happen.

I'm also concerned with job security in this time - is there a policy that covers illness, death and unemployment?

The other question is, do we really need it? Is it the norm to have it?

So confused, hadn't even thought about all of this!!!

kingstreet

What's included in the quote?

Life cover? Critical illness cover?

What happens if you are off sick? When would your employer stop paying you? As you ask, what happens if you lose your job?

Why isn't your "adviser" discussing all the possible risks with you and establishing a programme of protection which answers your concerns?

Is it possible he is selling the thing which is easiest for him?

dunstonh

This seems quite expensive!

Compared to what? What does it include?

'm also concerned with job security in this time - is there a policy that covers illness, death and unemployment?

Have you told the broker this? Maybe its included? The broker is there to advise but will only be as good as the things you tell him/her.

The other question is, do we really need it? Is it the norm to have it?

Do you need it to get the mortgage? No
Do you need it financially? most people do. Your broker is required to advise you on your needs.

Is it the norm to have it?

Most people insure themselves for the mortgage as the consequences of losing the house are not something they want.

_Andy_

Sounds like life and critical illness insurance.

Not sure why you feel it's expensive?

"We are both quite young" - best time to get life/CI cover - whilst you're young/healthy the premiums are lower

busicat

Well, fab that you're thinking about it now! You'll be so glad if you ever have the need to call on the cover. (Seems like most of us don't like to think about it until too late.)

Agree with Andy, sounds fine if include critical illness cover (which is much more likely than death to hit you before mortgage paid). Not to be confused with terminal illness cover which only pays if you've clearly only got a few months to go (Cheery stuff, eh)

BUT, if no critical illness cover and you're non smokers in good health, depends on what type of broker you're talking about. Chances are your mortgage expert is not an expert in all the other stuff and tied to one insurer, so premiums higher than elsewhere. Best going to an Independent Financial Adviser to go through the whole thing with you and make sure you're getting the best level (and value) of cover for what you can afford