Endowment/Life Assurance policy

venture211

We are FTB, have exchanged contracts on our house and have received a letter from our conveyancer stating all the completion to-do-things and the below:

Please ensure that any endowment/life assurance policies taken out in connection with your mortgage are placed into force immediately.

Can somebody please explain what exactly is required?

holly_hobby

This is standard wording once legally committed to pch - nothing to worry about.

As I doubt as a FTB you have effected an endowment mge, it relates to any life cover, income protection cover, blds ins, you may have chosen to effect in connection with your house purchase and mortgage.

It simply means you call the provider and ask them to be put on risk/on cover/commenced or whatever term you wish to use.

Hope this helps

Holly

dunstonh

When you exchange contracts, you effectively become committed somewhat to buying the property. So, most legal and financial advisers will recommend you commence your buildings insurance and life assurance at that point and not wait until completion. Just in case something happens in that small gap period between exchange and completion.

Your IFA or mortgage broker will be able to advise you on this if you used one. If you are going DIY then you need to instruct your insurers now.

venture211

Thanks.

We are going to see this in details, taking advices before we buy one for long term as this sounds good to have.

Can someone please confirm if this not a required policy for completion though?


Thanks

holly_hobby

The only compulsory insurance (thoughout the term of your mortgage) is Buildings Ins - as this is a requirement under the terms of your mortgage offer (T&Cs).

Life cover, income protection, contents cover, is all discrectionary on your behalf.

See an IFA if you want to discuss your life & protection requirements.

Hope this helps

Holly x