life insurance to cover mortgage

ConfusedofYorkshire

My mortgage broker said it is wise to take out life insurance now that we are getting a mortgage.

However, he has repeatedly said he's going to send out some options and still hasn't done it. I'm hoping to complete next week.

Do I need a broker in order to get the appropriate level of over or should I just they to find it myself? He made out like I could only get it through him, which I doubt I'd the case and I'm sick of waiting for him.

G_M

You can get online quotes for life cover.

Shop around yourself.

da_rule

The mortgage offer should tell you what levels of cover you need (usually equal to the value of the mortgage). Life insurance is available through a lot of the comparison websites.

G_M

but when considering life insurance, think deeper than just the mortgage.

If you are single, do you need it at all? If you die does it matter if the property is used to pay off the mortgage?

If you are married, with kids, you might want to leave your family with more than a mortgage-free property to live in, especially if you are the only earner.

ConfusedofYorkshire

Married, 1 child. Both work but I'm part time so my husband's salary is worth more so he's more important.

I've been looking, the choice is a bit over whelming!

da_rule

There is a lot of choice, but just like car insurance you have to look at what each company is offering. Not just level of cover and price but any added extras.

da_rule

Also, don't most mortgage companies want to see proof of insurance? I know I had to submit mine with my buildings insurance to my lender when I sent off the mortgage deed.

TBagpuss

Your husband's income may be higher but if anything happened to you there would not only be the loss of your income, but also the cost of child care if you currently do that around your job.

It is a bit overwhelming but I think the firs thing to do is to look at how much you feel would be needed, and for how long. then look at the costs

TBagpuss

da_rule wrote: »

Also, don't most mortgage companies want to see proof of insurance? I know I had to submit mine with my buildings insurance to my lender when I sent off the mortgage deed.

I think it depends on your lender and LTV.

I checked with my lender as I'm in the process of moving house and they have confirmed that while they recommend that I get life insurance, they don't require it.

I am single with no dependants.

ConfusedofYorkshire

I'm fairly sure we have no obligation to get it. Though I will double check. It's sensible for us though, particularly with us having child.

G_M

Most lenders are primarily concerned to protect their loan - not to protect your family.

So long as they know that their loan can be re-paid, by selling the property if necessary, they will be satisfied.

Where your family would then live is not their concern.