Is life insurance compulsory?

jordan88

Hi, Just a quick one, I'm wondering is life insurance compulsory to get your mortgage? we have a mortgage application currently in process with Natwest. Thank you

glosoli

As discussed in a thread yesterday, no it is not compulsory. Only buildings insurance is.

jordan88

Thanks, I did go through some threads and used the search function but couldn't find anything specific as to whether or not it's compulsory. So thank you for reply, and apologies for repetitive question.

PawelK

jordan88 wrote: »

Thanks, I did go through some threads and used the search function but couldn't find anything specific as to whether or not it's compulsory. So thank you for reply, and apologies for repetitive question.

Has your broker told you the same as me? :rotfl:

https://forums.moneysavingexpert.com/discussion/5667516

jordan88

Haha.... Pawel!!! Our broker didn't tell us it WASN'T a requirement, more along the lines of "I'll get your life insurance sorted for you aswel" as if it was a necessity!! It's nice to get other people's experiences and knowledge who have been through the process so thought I'd ask!! Hope yours going well for you!! We're still waiting to hear about our mortgage ��

PawelK

jordan88 wrote: »

Haha.... Pawel!!! Our broker didn't tell us it WASN'T a requirement, more along the lines of "I'll get your life insurance sorted for you aswel" as if it was a necessity!! It's nice to get other people's experiences and knowledge who have been through the process so thought I'd ask!! Hope yours going well for you!! We're still waiting to hear about our mortgage ��

That is why I love this forum and its people :T
I got my offer accepted two weeks after we sent it with my broker to Nationwide. They seemed to be very efficient and quick.
With regards to insurances, mine was trying to get me into all possible types, all of which I rejected at that time. I think only building insurance is compulsory which is usually covered by freeholders. I am buying a leasehold flat though, not sure what is yours. My solicitors are currently chasing sellers solicitors for contract pack.

Good luck to you too!!!

David_White

jordan88 wrote: »

we have a mortgage application

Protection isn't mandatory however please do put serious thought into it.

It sounds like you're applying in joint names so consider the consequences of losing one of these incomes, whether that be for a short period of time or indefinitely.

Probably worth looking at what other insurance products you may already have (phone, travel, contents, pet etc) and ask yourself why you're insuring that and considering not insuring yourself.

Jkbc90

I feel silly admitting it but I didn't know this! Our broker has us an appointment lined up for after the offer comes through (fingers crossed) for life and home insurance, I thought we had to have it. It's something we are going to get anyway but we weren't made aware it wasn't compulsary. He is doing both for us?

PawelK

Jkbc90 wrote: »

I feel silly admitting it but I didn't know this! Our broker has us an appointment lined up for after the offer comes through (fingers crossed) for life and home insurance, I thought we had to have it. It's something we are going to get anyway but we weren't made aware it wasn't compulsary. He is doing both for us?

Yup, those two are the main he was trying to push onto me too. I had to be very assertive to decline on the day. Also just confirmed recently I have life insurance provided by my employer so check that.
Agree with David that it makes sense in many circumstances. I am, however, single, not planning to have children so paying £70 or so just for life insurance a month is a definite no. Will probably take only content insurance after moving in and no payment protection as I am planning to rent one bedroom out which should be paying most of my mortgage off.

amnblog

jordan88 wrote: »

Haha.... Pawel!!! Our broker didn't tell us it WASN'T a requirement, more along the lines of "I'll get your life insurance sorted for you aswel" as if it was a necessity!! It's nice to get other people's experiences and knowledge who have been through the process so thought I'd ask!! Hope yours going well for you!! We're still waiting to hear about our mortgage ��

Where there is someone you do not want to leave with the debt on your death, consider it a requirement Jordan.

amnblog

PawelK wrote: »

paying £70 or so just for life insurance a month is a definite no.

Before anyone starts panicking, £70 pm is miles away from being a representative figure for life insurance only for a typical first time buyer.