We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Life insurance - what amount should I cover?


Hello everyone,
We’ve only just bought a house together with my partner and looking for a life insurance or mortgage protection insurance covering both of us in case of our death. We’re interested in decreasing term life insurance. Should we cover the amount we borrowed or the amount we owe to the bank at present? Is it better to apply for life insurance separately or do you think a joint application works better financially?
Comments
-
Should we cover the amount we borrowed or the amount we owe to the bank at present?
If you have only just bought it, does it make a lot of difference?
At the end of the day, it is to clear the debt. So, go by that figure.
Is it better to apply for life insurance separately or do you think a joint application works better financially?You only need to clear the mortgage once if one of you dies. Not twice. So, joint life is suitable.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
If you have only just bought it, does it make a lot of difference?
Not really. I just wanted to point out that we're fresh when it comes to buying a house.dunstonh said:At the end of the day, it is to clear the debt. So, go by that figure.
Thanks for your reply.
0 -
AbsensCarens said:That's what I thought. I know some people around me, who bought life insurances covering the amount they borrowed, but not what they actually owe. It seems ridiculous.
But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll1 -
theoretica said:AbsensCarens said:That's what I thought. I know some people around me, who bought life insurances covering the amount they borrowed, but not what they actually owe. It seems ridiculous.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.7K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.4K Spending & Discounts
- 243.7K Work, Benefits & Business
- 598.4K Mortgages, Homes & Bills
- 176.8K Life & Family
- 256.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards