Is life assurance required before exchange?

PawelK

As the title say. I thought this is not compulsory until I got an email from my broker saying Imust have it sorted before exchange as solicitors would need to know my arrangements.

Any comments please?

glosoli

No, generally only building insurance is a requirement for a mortgage.

ACG

Your broker is lying.
You do not need to have life insurance/assurance at all, only buildings insurance.

PawelK

That is what I thought. Thank you!
I can understand that ea can lie but a regulated broker? I will defnitely not be buying any insurance from them. And wondering if (after the offer is signed and exchange takes place) I can complain about him to the regulatory body?
He was such a good guy finding me a good offer, lol...

glosoli

At the end of the day, all he is trying to do is to ensure that should anything happen to you then your property can be past onto your estate without the concern of a mortgage.

A lot of people overlook this, and don't bother with it. However, if you ever have had the misfortune of having to tell someone's grieving relative that they didn't bother to take out any form of life cover, you would understand why mortgage advisors sometimes up the pressure a bit to get someone to take it out.

Don't give the guy the headache of a complaint over it.

PawelK

glosoli wrote: »

At the end of the day, all he is trying to do is to ensure that should anything happen to you then your property can be past onto your estate without the concern of a mortgage.

A lot of people overlook this, and don't bother with it. However, if you ever have had the misfortune of having to tell someone's grieving relative that they didn't bother to take out any form of life cover, you would understand why mortgage advisors sometimes up the pressure a bit to get someone to take it out.

Don't give the guy the headache of a complaint over it.

You must admit that advice worrying for my estate in the event of death and saying "must have it before exchange" are very different and the latter is a clear lie! I remember when chosing with him what mortgage to go for, he became quite pushy when I declined all types of insurances directly from them saying I need more time to think about it and will decide later. Besides, I am a single person with no intention of having my own family and children. :T

ACG

You can complain about the broker. I am always pretty hard on brokers who lie or try to pull a fast one as it can reflect badly on our industry and all brokers as a whole - which in turn could affect me.

I agree with the above in that, there is usually a need for life insurance where there is a debt involved - assuming you have a family. But there is also (arguably more of) a need for things like income protection, but some brokers jsut go after the "easy sale" with life insurance.

Im not sure I would be trusting anyone who is lying to me regardless fo whether their intentions are good or not.

davidmcn

And I have no idea why your solicitor would care less about your life insurance arrangements.

JDMCG

I had exactly the same thing, they told me that I had to have buildings and life insurance in order for the mortgage to go ahead. Bare faced lies are not acceptable. Pushy sales tactics, whilst annoying, are not as bad as actual lies. Where was the location of this broker?

PawelK

ACG wrote: »

You can complain about the broker. I am always pretty hard on brokers who lie or try to pull a fast one as it can reflect badly on our industry and all brokers as a whole - which in turn could affect me.

I agree with the above in that, there is usually a need for life insurance where there is a debt involved - assuming you have a family. But there is also (arguably more of) a need for things like income protection, but some brokers jsut go after the "easy sale" with life insurance.

Im not sure I would be trusting anyone who is lying to me regardless fo whether their intentions are good or not.

I am an ACCA qualified so couldnt agree more with you on how important it is to care about our profession reputation. Especially that we let the society down badly in recent years (2008 and prior).

PawelK

davidmcn wrote: »

And I have no idea why your solicitor would care less about your life insurance arrangements.

I was thinking the same. Wanted to email my solicitors to check that but for now replied to the broker asking for clarification.