Mortgage life assurance discussion

webmasterpolo

Hi,

I've just remortgaged and l am now looking at my mortgage protection cover. Currently done through Allied Dunbar by a FA who l've just noticed was a tied agent. I was so uneducated back them (before l found this site). Paying a woping £30 odd per month for me and partner.

Done a few quotes on Cavendish and it's about £10/mth for a joint policy, very angry now that we've paid about £480 more than we needed to for this policy.

I have a question about some of the options on the Canvendish online quote page though:

What are these different types of policy:

Term
Convertable Term
Mortgage Protection
Family Income Benefit

Thanks for your help in advance.

bernardh_2

Hi DD.I arranged for life cover via L&G when I got my mortgage. 3 months later,they cancelled it after my medical reports and refunded the premiums. So I am not covered.
I am 50,never smoked,no alcohol for 3 years - but am an alcoholic.Problem is heart failure. Is there anyone out there who will consider insuring me for a reasonable fee?

dunstonh

When you say heart failure, do you mean you have had problems in that area already or that there is a concern of future heart failure?

Often in cases where more severe medical underwriting is more involved, it is worth getting the IFA to contact the providers underwriting to give them info before submission. Then submit to 3-4 providers that say they are willing to look at the case based on what has been told to them over the phone. Its more work but it can save a lot more time in the long run.

bernardh_2

The heart failure was diagnosed at St Georges 2 years ago when my BP was 192/135 and resting pulse 122. I`m on a coctail of drugs to control BP to give heart an easier time. This runs in the family - mother has it at 76 and goes to the gym 5 times a week.
The only quote I`ve had so far was over £70 pm to cover 90k over 15 years subject to a medical.This was from one of the sites in Martins book (forgot which one).

dunstonh

In your case, you have to forget quote portals as they quote assuming good health.

You need an IFA to take those details you have mentioned, along with a few more personal details and then discuss your case directly with the underwriters and see how they would rate the case. Usually, the underwriter will give the IFA a reference or name that can be quoted on the application so when it arrives, the same underwriter can deal with it so you dont get a different answer.

samuela66

Help, I am getting really confused with all this, I had life insurance with critical illness cover when I was with my partner, we split and the company would not let me take his name off the policy so I cancelled it and at present have nothing, am I correct in thinking if I take out a policy with critical illness cover and I get ill and am unable to work , my mortgage payments will be met?? Also can anyone tell me the best policy to go for I am 38 single non smoking female, thanks!!!

dunstonh

am I correct in thinking if I take out a policy with critical illness cover and I get ill and am unable to work , my mortgage payments will be met?? Also can anyone tell me the best policy to go for I am 38 single non smoking female, thanks!!!

No, that is not correct.

You are thinking about mortgage, unemplyment, disability insurance or accident, sickness and unemployment as its sometimes called.

Critical illness cover is for a lump sum payment on diagnosis of a range of critical illnesses. Such as heart attack, kidney failure etc.

webmasterpolo

No one has answered my question - What are these different types of policy?:

Term
Convertable Term
Family Income Benefit

I got this one:  Mortgage Protection (this covers mortgage payments during the mortgage term and nothing else)

Oh and another thing: Do companies have tie in periods or charges for cancelling and switching policies? I have one that is expensive and have just remortgaged and now want a new policy as well.

Thanks

payless

No one has answered my question - What are these different types of policy?:

Term
Convertable Term
Family Income Benefit

I got this one:  Mortgage Protection (this covers mortgage payments during the mortgage term and nothing else)

Oh and another thing:  Do companies have tie in periods or charges for cancelling and switching policies?  I have one that is expensive and have just remortgaged and now want a new policy as well.

Thanks

Usually no cancellation period/ penalty for pure assurance , although some brokers have been known to tie clients in with a fee if cancelled within 4 yrs

--
--

Information on product types is available on the web, but really, if asking the question you are better speakng direct to an adviser.
Are you still looking at becoming an IFA - if so this is covered in the initial exams

( I will PM you some info)

katieb_3

I am currently going through the whole saga of mortgage life insurance, mortgage payment protection etc and am confused!? I don't have any dependants and am buying the property on my own. Therefore do I need both mortgage life insurance AND mortgage payment protection. Obviously if I were to become sick, unemployed or were in an accident then MPPI would be required. However I have got life insurance through work so do I also need to pay a mortgage life insurance? Also will I still get my mortgage if I don't get mortgage life insurance?