First time buyer insurance question

sparkychris

Morning team!

My partner and I are due to move into our first home any day now.

Our mortgage agreement stipulates that we must have insurance in place to cover the mortgage should we die..

What is this insurance called and can anybody recommend something to google?!

we havent taken out any insurance yet and nobody has asked for proof yet we are due to complete any day.

Thanks in advance....

csgohan4

Life assurance, MSE does an article on them too


http://www.moneysavingexpert.com/life-insurance/

Weighty1

sparkychris wrote: »

Our mortgage agreement stipulates that we must have insurance in place to cover the mortgage should we die..

This is really unusual in this day and age. Typically the only insurance you *need* to have in place is buildings insurance as this ensures the lender isn't left with a bar piece of ground if the building is a total loss. Normally, they aren't bothered what happens if either of you die as they can always repossess the house if the surviving partner can't keep up repayments (obviously, not ideal from your perspective though).

As has been mentioned, it's life insurance that you need there's hundreds of sites where you can get quotes depending on what you want, whether you want advice or to DIY etc.

ACG

sparkychris wrote: »

Our mortgage agreement stipulates that we must have insurance in place to cover the mortgage should we die..

What is this insurance called and can anybody recommend something to google?!

It is called Life insurance or term assurance.

Are you sure it states you need insurance incase you die? I have been a broker for 4-5 years and never come across that stipulation. It is not necessarily a bad idea ot have the insurance, but I do not think it is a requirement.

Who is your Mortgage lender?

sparkychris

hello.... and thanks for the replies.

My lender is santander. I will check the exact wording of the document and get back to you...

and in the meantime I will look into life insurance!

ThinkingOutLoud_2

Weighty1 wrote: »

This is really unusual in this day and age. Typically the only insurance you *need* to have in place is buildings insurance.

Please note the quotes weighty has put around need are very significant.

Just because no law forces you to have life insurance or contents insurance does not mean you should not.

It is all a question of what will happen if the worst did happen. Think that through ...

There is no law making you eat fruit or veg either ...