Mortgage life insurance - partner in army

LondonGirl252

Hi guys,


Really appreciate any advice here!


We're using London and Country mortgage brokers on the purchase of our first home together and he's given us a quote for level life and critical illness cover with Aviva at £102pm jointly.


It has guaranteed premium, partial payments for non critical illnesses, its over 30 years (term of mortgage) and for cover of £255,000 (value of mortgage).


I am an accountant, my partner is in the army so I appreciate he is high risk. We're both 28, never smoked, healthy and no underlying problems.


I just did a comparison quote online with the same info and it came up at £16pm which is a HUGE difference, does this difference sound reasonable considering my partner is in a high risk job?


I don't mind paying if that's what it is I just want to make sure we pay the right amount for what is suitable for our needs and I have zero experience in this area.


Thanks for your help


LG

Weighty1

That seems like a big price difference. I'd expect that the premium found online does not include critical illness cover as this sounds simply too cheap based on the level of cover and the cover being level.

Some providers are more lenient to armed forces personnel than others, however, providing your partner is not currently under order to be deployed to an active theatre of operations or undertakes high risk duties such as bomb disposal then normally Aviva are a fairly lenient provider.

Whether they are better than others is a matter of discussion.

LondonGirl252

Ok great, thanks that helps.


I probably need to call up a provider and do a full quote over the phone to make it fully comparable.

dunstonh

The £116pm wont include any of the addons (such as CI cover).

Is it reviewable premiums or guaranteed? Some of the comparison sites put yearly renewable term assurance at the top which is cheap in early years but is repriced annually. It gets damned expensive later on.

LondonGirl252

Right, that would make sense.


The mortgage guy quote has guaranteed premiums for the life of the loan

kingstreet

Be careful with the difference between terminal illness cover and critical illness cover.

Life assurance normally has a free terminal illness bolt on, but this isn't critical illness cover as it only pays out if you have a confirmed diagnosis of death normally within a shorter period, perhaps twelve months.

LondonGirl252

OK thank you that is useful. I shall be doing more work on this today and will update!

LondonGirl252

Thank everyone for your help on this, had some help from a lovely IFA on here who did some comparisons for me and the quote isn't too far off.


Cheers