Insurance + mortgage decision?

Dird

Hi,
My application is currently "being reviewed" and Yesterday I had a call with the mortgage advisor quoting their buildings/sickness insurance. I was a bit on the fence about the sickness insurance as I hadn't researched anything about it but he would "really recommend" I take some.
Does taking/not taking death/sickness insurance affect the chance of the mortgage being approved?
Death insurance: My pension covers death in service
Buildings/Content cover: Found a cheaper quote online...I assume in a fire/flood you make a single contents claim for everything damaged?
Sickness insurance: Do people normally take it out for the duration of the mortgage then just cancel it early if they pay the mortgage off sooner?

betmunch

The insurance decision should not impact on the mortgage application.

Don't worry about what people normally do. Decide what's right for you, whether that be take it or leave it.

amnblog

...and you don't want 'cheap' insurance.


You want what is right for you and your circumstances.


Don't treat it as an optional extra - it isn't.


Everyone needs to protect themselves, their property, and their families.

Dird

amnblog wrote: »

...and you don't want 'cheap' insurance.

Everyone does. How often do people choose mid-range car insurance rather than 1 of the 2 cheapest for them on a comparison site?

The thing is, from September I'm on 2 months full, 2 months half pay sick leave. If I'm hospitalised this would cover the mortgage for 6 months. But September 2016 I'll be on 4+4 essentially covering 12 months mortgage.

I guess I'd be best to just take out for 1 year then do a new policy with my changed terms?

libf

Dird wrote: »

Everyone does. How often do people choose mid-range car insurance rather than 1 of the 2 cheapest for them on a comparison site?

And then a number of those will regret it when they need to claim and find they're not as covered as they thought!

koexelek

Dird wrote: »

I was a bit on the fence about the sickness insurance as I hadn't researched anything about it but he would "really recommend" I take some.

Any adviser these days has to, in order to cover themselves against potential complaints.
A lot of people don't want to hear about/pay for insurance when they take a mortgage out... but will be very quick to try and blame the adviser in the future if they have a potential claim which they could have insured themselves against.

I don't care whether people take it or not. All I care about is that I have it on file that I offered them it and recommended it.

Dird

koexelek wrote: »

Any adviser these days has to, in order to cover themselves against potential complaints.

Yeah I figured as much in this compensation nation. 2 years on I'm still getting spam calls trying to convince me to claim whiplash on a 10mph accident I caused -_-"

amnblog

If course, if you had given a 39 year old client with a cancer diagnosis an insurers cheque for £420,000 you may have a different view.

Dird

amnblog wrote: »

If course, if you had given a 39 year old client with a cancer diagnosis an insurers cheque for £420,000 you may have a different view.

That's not to say the cheapest insurer wouldn't have paid out though.

Mortgage_Mark_2

Dird wrote: »

That's not to say the cheapest insurer wouldn't have paid out though.

That depends what type and stage cancer we're talking about. That would make a difference.

amnblog

The insurer was the best value for money at the time.


We do not offer 'cheap' options.


'Cheap' is what it is, 'Cheap'.