Mortgage life assurance from completion or exchange?

pinkteapot

We're in the process of selling and buying (will be completing on both at the same time).

We're upsizing and taking on a bigger mortgage, which neither of us could pay by ourselves (for the first few years at least), so we're getting decreasing term life assurance to pay off the mortgage if either of us dies.

Morbid question - what happens if one of us dies between exchange and completion? Presumably the other still has to go through with the sale and purchase...

If so, should we have the life assurance in place from exchange of contracts?

chanz4

If no exchange the sale doesn't have to complete.

pinkteapot

I was asking about what happens after exchange. Obviously if something happened prior to exchange we could pull out.

ethank

You would have to complete.

If you have any health problems which will require a life assurer to contact your GP for medical history, it could take weeks for you life assurance to go through.

G_M

Well, would the death of either one of you create financial difficulties for the surviving one given the legal obligation to Complete?

Once you have answered that question, you'll have the answer to your original one.

kingstreet

Buildings insurance and life cover from exchange, as you then take on the legal obligation to purchase on the agreed completion date, regardless of whether the property is a smouldering heap of embers, or you're dead.