Mortgage life assurance discussion

payless

Most mortgage providers don't care if you take life cover or not

keetz

I'm seeking Mortgage life assurance help! I have a policy with my ex-husband with Standard Life originally to pay off an Endowment mortgage.We divorced and I kept the policy (£30.30 pm) It is only for £20,000. and when it looked like there would be a huge shortfall I moved to a repayment mortgage but kept the policy.
it has made just under £600 in a year but still my statement arrives announcing a high risk of shortfall...do I need it now it is no longer attached to a mortgage? Are there penalties for selling it and what would I lose?. Should I get a cheap life assurance and a high interest account for my £4,000. raised so far....any help for a confused would be money-saver?

dunstonh

1 - standard life are demutualizing in the next 18 months resulting in a bonus to policyholders in the with profits fund.

2 - Standard life do not include any terminal bonuses in their projections so potentially quite a chunk of the value is missing on projections.

3 - Standard life have a trend of showing shortfalls prior to maturity but then paying out surpluses on those same plans

4 - Projection rates have been reduced over the years. Projections are not a real indication of what you are going to get. Some will be better than the projections. Others will be worse. Standard Life have the potential to a little better than the average and with the likely fund switch options that may come into effect after demutualization (being discussed at the moment and looking likely), it may be foolish to surrender at this time.

Alba58

I have just sold my property and therefore no longer have a mortgage...I take it that there are much better things that I could do with the £28 per month premium for life insurance/mortgage protection that I have been paying? As I'm trying to reduce my debts, I guess I'd be better off putting the money towards that or saving it somewhere else for the future? Any advice gratefully received as I'm hopeless at this sort of thing! :-)

kjl26

This has probably been discussed before but I am still confused...

Buying a house, joint mortgage of £150,000. We have savings that would cover the whole mortgage for a year or so if both of us were to be sick or unemployed - am I correct in thinking that this is only what a payment protection plan would do anyway, and that it wouldn't in any case kick in for 30 days or so?

In the circumstance where only one of us was sick or unemployed, things would be a bit tight but the other could afford to cover the mortgage for a while, just about. So really we are talking about protecting ourselves against a reasonably unlikely situation, where we may already be able to cover ourselves anyway (as above), so is it worth it??

And a life and critical insurance decreasing cover policy (tis a repayment mortgage) seems pretty essential, as the mortgage will be held in joint names and if the unthinkable happened to one of us the other would be able to pay for a while but would ultimately have to sell: not ideal.

Does this all make sense and am I right to think that MPPI is not necessary but some sort of life assurance policy on the mortgage is? (And would this change if we had kids...suspect so?).

Thanks
Katie

dunstonh

kjl26 wrote:

This has probably been discussed before but I am still confused...

Buying a house, joint mortgage of £150,000. We have savings that would cover the whole mortgage for a year or so if both of us were to be sick or unemployed - am I correct in thinking that this is only what a payment protection plan would do anyway, and that it wouldn't in any case kick in for 30 days or so?

In the circumstance where only one of us was sick or unemployed, things would be a bit tight but the other could afford to cover the mortgage for a while, just about. So really we are talking about protecting ourselves against a reasonably unlikely situation, where we may already be able to cover ourselves anyway (as above), so is it worth it??

And a life and critical insurance decreasing cover policy (tis a repayment mortgage) seems pretty essential, as the mortgage will be held in joint names and if the unthinkable happened to one of us the other would be able to pay for a while but would ultimately have to sell: not ideal.

Does this all make sense and am I right to think that MPPI is not necessary but some sort of life assurance policy on the mortgage is? (And would this change if we had kids...suspect so?).

Thanks
Katie

ASU (accident, sickness and employment) is there for people who dont have sufficient savings. So it appears from what you say that you do not need it.

Life assurance (&CI) are desirable when somoene will be financially worse off in the event of death (or specified critical illness). If that applies to you, then you do need it.

Beck_2-2

DUPLICATION

Martin’s asked me to post this in these circumstances: Sorry, your post had to be deleted as it has been posted elsewhere and that’s one of the site’s rules (please see this rule). If you have any questions about this policy please email [email="%20abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/email]

dunstonh

reported as spam. Self advertising (prentending to be a satisfied client) is the sign of a desperate company and I am disapointed that Martin approves/suggests using this company when the sink to such a low way to attract business. It is also in breach of FSA rules. Would you want to transact your business with a company like this?

dunstonh

21 of your 23 posts made link to 3 companies which are all part of the same group.

judimcc

I know this discussion is bombarded with “please help” pleas, but alas here comes another…

My partner and I are FTB’s, we have secured a mortgage of £120K, 100% over 30 years ( I know this seems steep but it’s just for first year to get our feet on the ground then we will review it), with repayments of £650pm. That’s all ok (well ok as it can be!).

But when it comes to getting life assurance we’re having difficulties. Our mortgage advisor is arranging it (and before you all go mad and tell me I’m crazy for letting this happen, I know that NOW! So that’s why I’m taking it into my own hands!). My fiancé has had 2 doctors come out now to give him a medical based on the information we gave our mortgage advisor and the initial company – BUPA has came back with a 70% added cover thing (I can’t remember exactly what it was called). Sirens were already sounding when we heard a doctor was coming out, but now we are really worried. He stopped smoking 9 months ago, is over weight and his Dad was diagnosed with Diabetes at 51. We figure it’s one or all of these factors that are affecting us getting cover?

Even without the 70% increase our joint cover was nearly £50 pm which seems scandalous compared to some of the offers I’ve seen on this thread.

Can somebody please offer some sound advice!?!?!?!?

P.S. I don’t know if it makes a difference but we live in Northern Ireland. Can I still try Cavendish that you all rave about?

P.P.S Also, million dollar question should I, or should I not get critical illness cover?

P.P.P.S When applying online for some it just asks smoker/non smoker - As he gave up smoking 9 months ago can I say non???

FINAL P.S. I promise – If I apply other places will they ask me if I have applied other places and should I declare what has happened so far???

Please help!!! Our move in date is less than 1 week away and I don’t want anything to go wrong!

Many many thanks Guys!!!


Judi