Unsure if we need decreasing life assurance for mortgage

Kat78MFW

Do either or both of you have any death in service benefits with your pensions? That might cover the shortfall between your existing life assurance and your mortgage. 

getmore4less

If no more kids on the way then you probably have enough LI in place to get through either of you seeing the kids out into the world.

Is new hubby getting official parental responsibility now or if you die(named guardian replacement).

Once they have gone there is always a downsize option for the survivor.
That the way we played it, no kids, I could have covered, the purchase the OH would have moved anyway if I went.
adding more life cover is securing the survivors future in the property.

One area you have not covered is income support if you don't die but become critically ill so the other has to give up work to become permanent carer.


Which lender has insisted on life cover I thought that had been banned,  it's not a broker slipping it on the list. 

dunstonh

Which lender has insisted on life cover I thought that had been banned,  it's not a broker slipping it on the list. 

Its not banned.   Being forced to use the insurer linked to the lender was banned. Lenders can still insist on life assurance. If they do, it must be on the offer letter (post 1 states that it is on the offer letter).

It is unusual though.  Typically only on non-mainstream lenders or commercial borrowing where the individual(s) are the key workers.

Weighty1

Kat78MFW said:

Do either or both of you have any death in service benefits with your pensions? That might cover the shortfall between your existing life assurance and your mortgage. 

I'd suggest that's not great advice.  What if one of them becomes long-term ill and needs to give up work?  All of a sudden the death in service disappears and at a time when it's likely to be almost impossible to replace.  Plus, DIS is not contractually guaranteed.  Just look at how civil servants and NHS workers DIS has reduced over the last 20-years.  They used to pretty much all be on 4X annual salary and now, pretty much none of them area.  DIS is a nice freebie but certainly not something to be relied on for debt repayment purposes.