Mortgage life insurance

booboo_5

I'm buying a house and was told I need to have a mortgage life insurance.A company offered me £70.00 a month for 25 years and said this is the cheapest one.The problem is I think that's too much.Does anyone know a cheaper deal?

dunstonh

Give us your sex, smoker status, date of birth, term of policy and sum assured and I or one of the others with quote portal access will see.

For all we know, you could be aged 90, want 10 million sum assured, in which case £70pm is dirt cheap

booboo_5

Thank you!
These are all the details:It's actually a joint mortgage of £84000 for 25 years.
I'm female ,date of birth 17.10.70,non smoker and my husband's details-04.08.1968,non smoker as well.
I just need the cheapest offer in order to get the mortgage

lisyloo

£70 a month sounds way over the top.
I pay £9.81 per month and I'm the same age as your husband.

Did they say that life insurance was mandatory for the mortgage or that you ought to have it (different thing).
Make sure you are clear on what they are saying.

Do either of you get any death benefits at work?

Many mortgage companies won't insist on it, so you could consider going elsewhere if you feel strongly about it or already have it from your employer.

It makes sense to have some cover but your employers cover may be sufficient.

payless

Assume the original quote includes extras , that likely includes crit illness ( and poss other things as well)

Do you understand the policy on offer - have you paperwork. If in doubt Ask questions or if not comfortable perhaps consider other advisers- as I would have thought any decent adviser would have gone thro' whats required, and whats prudent and the options

dunstonh

Note what payless says as it has an impact on the quotes.

Sticking your details into a quote portal (assuming standard terms), you get the following:

£10.74 life cover only, guaranteed premiums.
£40.03 life cover and Crit illness reviewable premiums
£53.41 life cover and CI guaranteed premiums

What you have been quoted sounds like the sort of premium a bank or building society would offer.

payless

or loaded with even more extras


OR

sold from a limited panel.

Unfortunately its been known ( and is not illegal >:( ) for some "brokers" to quote the providers that offer them the best terms.

waynef_2

What would your portal throw up for the following details?

Life and Critical Illness policy
Guaranteed premiums
Level £150,000 cover for 30 years
Joint Life

Life 1: M, non smoker, DOB 11/10/1978
Life 2: F, non smoker, DOB 06/06/1979

The best I can get is £57/month with Liverpool Victoria.

Thanks!

payless

you might find you have a restricted number of providers allowing a term over 25 yrs

dunstonh

What would your portal throw up for the following details?

Life and Critical Illness policy
Guaranteed premiums
Level £150,000 cover for 30 years
Joint Life

Life 1:  M, non smoker, DOB 11/10/1978
Life 2:  F, non smoker, DOB 06/06/1979
£39.
The best I can get is £57/month with Liverpool Victoria.

Thanks!  :)

Assuming level term you are looking at £63.32 reviewable and £88.77 guaranteed. (NDFS initial premium is £24.83 but that is a yearly renewable term)

Assuming decreasing term: £43.69 reviewable and £57.90 guaranteed.

Liverpool Vic offer both guaranteed and reviewable so make sure you are looking at the guaranteed quote as they are not the cheapest guaranteed option for my checking.

waynef_2

Thanks very much!