Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • tedzwedz
    • By tedzwedz 5th Dec 18, 4:21 PM
    • 6Posts
    • 2Thanks
    tedzwedz
    Life Cover for Shared Ownership properties??
    • #1
    • 5th Dec 18, 4:21 PM
    Life Cover for Shared Ownership properties?? 5th Dec 18 at 4:21 PM
    Hi I have Life Cover with Royal London which my shared ownership broker arranged.

    It seems very expensive at 33 per month 396pa. When I google life insurance cover some say from 5pm etc! My question is would that cover me on Shared Ownership or is it a different form?

    I bought a 25% share in my flat with a mortgage, the rest I rent from the freeholder and may buy more in the future.
    .
    Its a 25 year policy which is inline with the mortgage term and covers 532,500 which is apparently the full value of the flat (100%)

    Can anyone help?

    Best Edward
Page 1
    • dunstonh
    • By dunstonh 5th Dec 18, 5:03 PM
    • 96,100 Posts
    • 63,907 Thanks
    dunstonh
    • #2
    • 5th Dec 18, 5:03 PM
    • #2
    • 5th Dec 18, 5:03 PM
    It seems very expensive at 33 per month 396pa. When I google life insurance cover some say from 5pm etc!
    I doubt it is like for like at that cost difference.

    Usual reasons for cost differences of that size are:
    1 - existing plan includes critical illness cover. Alternative does not
    2 - existing plan is guaranteed premiums for the whole term. The alternative is annually reviewed and increase as you get older.
    3 - Its not a real quote and just an advert saying "from 5"

    Its a 25 year policy which is inline with the mortgage term and covers 532,500 which is apparently the full value of the flat (100%)
    That wont be 5. I have just bought 600,000 of life assurance for 22 years and its 91pm. Age is part of the reason as I am in my 40s. But you are never going to get 532.5k for 5pm.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • kingstreet
    • By kingstreet 5th Dec 18, 5:08 PM
    • 34,497 Posts
    • 18,739 Thanks
    kingstreet
    • #3
    • 5th Dec 18, 5:08 PM
    • #3
    • 5th Dec 18, 5:08 PM
    You must be paying over 1,500 a month in mortgage and rent costs and someone has protected your family so that in the event of death there will be no mortgage to pay and 100% ownership can be obtained so the rent also ends.

    33 a month expensive? Not likely. It's just over 6 per 100,000.
    Last edited by kingstreet; 05-12-2018 at 5:10 PM.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • tedzwedz
    • By tedzwedz 6th Dec 18, 6:13 PM
    • 6 Posts
    • 2 Thanks
    tedzwedz
    • #4
    • 6th Dec 18, 6:13 PM
    • #4
    • 6th Dec 18, 6:13 PM
    Hi Guys, thanks for your reply.

    Its a 1 bed flat under the shared ownership scheme, I pay about 450pm in mortgage for my 25% and about the same in rent for the 75% shared ownership bit so about 900pcm.

    I think that's the idea, I think if i die my brother would get the property and pay off the rent so no longer shared ownership?

    I was just wondering if this seemed high per month if so i could look to shop around?

    Best Edward
    • Weighty1
    • By Weighty1 7th Dec 18, 9:14 AM
    • 402 Posts
    • 187 Thanks
    Weighty1
    • #5
    • 7th Dec 18, 9:14 AM
    • #5
    • 7th Dec 18, 9:14 AM
    So you don't have a partner/kids?

    If not there's very little value in you having life insurance. Do you have income protection so that you can maintain the mortgage/rent if you are ill? If not, I'd suggest you look into this as a priority as this would be far more beneficial than life insurance
    • kingstreet
    • By kingstreet 7th Dec 18, 9:33 AM
    • 34,497 Posts
    • 18,739 Thanks
    kingstreet
    • #6
    • 7th Dec 18, 9:33 AM
    • #6
    • 7th Dec 18, 9:33 AM
    I think that's the idea, I think if i die my brother would get the property and pay off the rent so no longer shared ownership?
    Originally posted by tedzwedz
    I agree with Weighty.

    Did you specifically want to leave the property to your brother?

    Most people who are single no dependents have no demonstrable need for life cover, especially if they don't want to leave the unencumbered property to a particular relative.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • tedzwedz
    • By tedzwedz 10th Dec 18, 11:44 AM
    • 6 Posts
    • 2 Thanks
    tedzwedz
    • #7
    • 10th Dec 18, 11:44 AM
    • #7
    • 10th Dec 18, 11:44 AM
    Thank you, would the Income Protection be part of the same policy or a new one?
    • Weighty1
    • By Weighty1 10th Dec 18, 11:49 AM
    • 402 Posts
    • 187 Thanks
    Weighty1
    • #8
    • 10th Dec 18, 11:49 AM
    • #8
    • 10th Dec 18, 11:49 AM
    Some insurer's allow income protection cover to be taken as part of the same application process, however, it would normally be a standalone benefit. In addition to this, there are a lot of Friendly Societies which offer income protection and don't offer life insurance so looking for it to be part of the same application means you may not get the best overall provider for your circumstances.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,097Posts Today

6,401Users online

Martin's Twitter