Life insurance with mortgage

Yesideez

We're about to sign up to a part buy/part rent scheme with a housing association and one of the conditions is that we both have to take out life insurance as a condition.

As we're being left to our own device with regard to what insurance we go for, we're wondering if anyone has any helpful information or any "must know/important" information for anyone in our situation please?

hop3y

Hi Yesideez,

Do you have an IFA? They can usually point you in the right direction.

RickyC_IFSWP

Yesideez wrote: »

We're about to sign up to a part buy/part rent scheme with a housing association and one of the conditions is that we both have to take out life insurance as a condition.

As we're being left to our own device with regard to what insurance we go for, we're wondering if anyone has any helpful information or any "must know/important" information for anyone in our situation please?

You need to ensure that the life insurance matches the type and amount of mortgage you've taken out. Is it a repayment or interest-only mortgage?

Typically caveats are that the your life insurance application still needs to go through underwriting to assess your health (so the quoted price may change), there is no maturity value on the insurance policy, you must be honest and disclose information about your lifestyle & health, the life insurance only covers you during the term of the policy etc. More can be found on a "Key Features Documents" on an insurance company's website if you wish to research more into it.