Mortgage life insurance discussion

dunstonh

HockeyDuo8083 wrote: »

Should you just get Mortgage Life Assurance and not bother with Life Assurance?
Sorry it's all very confusing

Mortgage life assurance is life assurance. Its just one of the 15 or do different types of life assurance policies you can get. Generically, it is called decreasing term assurance but some providers have given them marketing names such as mortgage life assurance as thats what most people use decreasing term assurance for.

You think thats confusing, try explaining to the client why you are using a product called mortgage life assurance when its not actually for a mortgage need (but a decreasing need)!

HockeyDuo8083

Thanks dunstonh.:T

So basically we each need to have Life Assurance and Critical Illness Cover. OH has both these already through work so I just need to get them.As a couple we will need to take out Mortgage Payment Protection Insurance and Buildings & Contents Insurance.

Have I missed anything?

I take it there can be a clause in the MPPI that covers Redundancy??

Malcmandy

Relatives have a Decreasing Mortgage Insurance on their Spanish property, the annual amount of which is now expensive due to the euro.
Would it be best to cancel this and take out another form of insurance, in this country? Possibly a life one ?

Thanx

puskas17

Hi their wondering if anyone could help out at all please or have some advice. I took a life insurance policy out to pay off my mortgage. Last year I retired and paid my mortgage off. My question to you guys is, should I continue to pay the policy till end of term or cash it in just now? My mortgage was £30,000, current policy benefits are £17,500 with 4 years remaining. Many thanks

dunstonh

should I continue to pay the policy till end of term or cash it in just now?

When are you going to die

Also, you say cash it in. That suggests an invesmtent element and not pure term assurance. You will need to consider the cost of early surrender against paying ongong premiums and the potential benefit.

JasonTheKnight

Hi!

Hopefully not tooo stupid a question... if I'm taking out life assurance on a new repayment mortgage, do I take it out for the value of the mortgage itself (ie the x% of the house price we're borrowing), or the total repayment cost of the mortgage (ie including the 25 years of interest)?

Many thanks!

Jason

yelf

I think people with specifc questions should post them in their own thread otherwise it will get mnessy.

This is a poor article with poor advice. To say CIC isnt important is stupid. You're far more likely to make a CIC claim than a life claim. PHI may pay out if you are ill due to a CI, but it will hardly be enough to cover the mortgage with much spare.

The article writer clearly has other reasons for writing this than helping peopel, and MSE shouldn'e have posted it.