Life assurance and mortgage

darkchild101

Thinking of getting life assurance. i do not have a mortgage at moment as i am renting but thinking of getting one(mortgage) next year or year after

My question is if i get life insurance now, can it be modified afterwards to include mortgage cover once i have bought a house. Also are there products that include income protection out there. I am being tested for a possible auto immune issue and i fear might have to take time off work in future as situation deteriorates

Thanks

kingstreet

Do you have any dependents?

If yes, you probably have a need for life cover.

If no, who would lose out financially on your death?

Once you have a mortgage, same question. The mortgage can be repaid from the sale of the property by the lender. Would you want someone to have the property mortgage-free after your death?

The answer determines the need, or not.

Finally, yes you can bundle life cover and IP together. However, your chances of getting cover for an existing condition or one under investigation may be reduced.

InsideInsurance

Insurers are rarely going to be comfortable for insuring you for a condition you might have. If its confirmed you have it and its severity etc all confirmed then they MAY be willing to cover it with an appropriate inflation of premium but they may simply exclude anything relating to it.

What insurers will cover for life and what they will cover for income protection is different as there are many things that may stop you working but wont shorten life expectancy.

You can buy life cover that'd allow you to increase the sum insured at a later date

weighty1_2

Aside from the reasons behind arranging the cover I feel that you may not be able to get cover until these investigations are completed. Any insurance company would need a definitive answer as to whether you have or have not got this condition before they underwrite you to ensure they are offering the appropriate terms.

There are providers which allow you to have several elements of cover, including income protection, all bundled into one package, however, it may not be the most cost effective solution depending on your job.

As Kingstreet has already mentioned, often pre-existing conditions are excluded from income protection plans. There are short term income protection plans (the old fashioned PPI type cover) which do cover pre-existing conditions once the plan has been in force for 12-months so it may be worthwhile investigating this avenue.

I'd recommend you speak to a whole of market protection specialist or an IFA who is experienced in dealing with clients with health disclosures

darkchild101

Thank you al for your replies

My condition is not life threatening it just affects my mobility. So far its under control using prednisolene steroid tabs but a consultant wants me off them as she says it only masks the problem making proper diagnosis very difficult. Once i am off them i wil experience muscular pain and problems and some skin problems but it wont kill me but lay me off work

@ Kingstreet yes i do have 3 sons/dependents and a wife and i would like the house to pass onto them in event of my death (hopefully in the distant future )

kingstreet

darkchild101 wrote: »

@ Kingstreet yes i do have 3 sons/dependents and a wife and i would like the house to pass onto them in event of my death (hopefully in the distant future )

There's your need for family protection cover and then for mortgage cover later too.

darkchild101

kingstreet wrote: »

There's your need for family protection cover and then for mortgage cover later too.

Thanks

Any particular cover you or other members can recommend please

macca1974

with your condition, I would suggest going to a protection specialist / IFA to look at this. With the Income Protection, the "underwriting" is very thorough and they will look very closely at conditions that you currently have that might cause you to claim on the policy. It has been a while since I was involved in the market, but I would have thought that if you have an illness that is likely to cause absence from work that you would be declined cover, however a protection broker could give you a more complete answer.

Regarding the life cover, again, your condition is likely to cause an issue with the underwriting, so speaking to a specialist who is able to discuss the matter with underwriters pre-application is likely to be the best way forward as you won't end up wasting your time (and getting applications declined which can affect your ability to take out policies in the future).