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  • FIRST POST
    • Sareteegee
    • By Sareteegee 12th May 18, 6:41 PM
    • 27Posts
    • 9Thanks
    Sareteegee
    Buildings insurance and Life insurance
    • #1
    • 12th May 18, 6:41 PM
    Buildings insurance and Life insurance 12th May 18 at 6:41 PM
    Hi All,

    Does anybody know when the best time is to get Buildings insurance and Life insurance because our mortgage broker is pushing for us to get it as soon as possible but I don't see the point in getting and paying for it now because we haven't even had our mortgage approved yet and completion wont be for another few months.

    Thanks in advance
Page 1
    • 4ndy8
    • By 4ndy8 12th May 18, 9:59 PM
    • 17 Posts
    • 4 Thanks
    4ndy8
    • #2
    • 12th May 18, 9:59 PM
    • #2
    • 12th May 18, 9:59 PM
    Hello, you could set these up but donít have them start yet. Then call them when you know dates. Thatís what Iíve done.
    • Slithery
    • By Slithery 12th May 18, 10:01 PM
    • 967 Posts
    • 1,554 Thanks
    Slithery
    • #3
    • 12th May 18, 10:01 PM
    • #3
    • 12th May 18, 10:01 PM
    You don't need building insurance until exchange, you don't need life insurance until completion.
    • dimbo61
    • By dimbo61 12th May 18, 10:13 PM
    • 10,071 Posts
    • 5,451 Thanks
    dimbo61
    • #4
    • 12th May 18, 10:13 PM
    • #4
    • 12th May 18, 10:13 PM
    How can you take out buildings insurance until you know what property you are buying.
    Use a comparison website like moneysupermarket or compare the market etc
    As for Life assurance Please Please please take this out to cover the whole mortgage amount and ask for Level term. I.E. the amount it would pay out remains the same for the whole term.
    Again shop round with comparison websites or Cavendish online, Zurich, moneysupermarket, etc
    • G_M
    • By G_M 12th May 18, 10:15 PM
    • 45,851 Posts
    • 55,337 Thanks
    G_M
    • #5
    • 12th May 18, 10:15 PM
    • #5
    • 12th May 18, 10:15 PM
    It is worth shopping around in advance for both. Don't just automatically use the broker.


    You can select the policies in advance (indeed you should) but you do not set them up till Exchange of Contracts (at which point you are legally committed to buying).
    • eddddy
    • By eddddy 12th May 18, 10:24 PM
    • 7,173 Posts
    • 7,126 Thanks
    eddddy
    • #6
    • 12th May 18, 10:24 PM
    • #6
    • 12th May 18, 10:24 PM
    If you want/need life insurance to give financial security to your dependants, maybe you should get it now.

    Then...
    • if you die before you buy a property, the insurance pay-out will provide the money for your dependants to buy a property to live in.
    • if you die after you've bought a property, the insurance pay-out will pay off the mortgage, and allow your dependants to continue having a property to live in.
    • kingstreet
    • By kingstreet 13th May 18, 9:43 AM
    • 34,342 Posts
    • 18,651 Thanks
    kingstreet
    • #7
    • 13th May 18, 9:43 AM
    • #7
    • 13th May 18, 9:43 AM
    You don't need building insurance until exchange, you don't need life insurance until completion.
    Originally posted by Slithery
    Both should start at exchange of contracts. Completion for buildings insurance, in the case of a newbuild.

    If you die between exchange and completion, the funds are still required to complete the contract.

    It can take months to get life, critical illness and income protection cover medically underwritten. Applying now, getting underwritten and being ready to go on risk at exchange of contracts is the sensible route.
    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.
    • shortcrust
    • By shortcrust 13th May 18, 9:57 AM
    • 2,149 Posts
    • 3,311 Thanks
    shortcrust
    • #8
    • 13th May 18, 9:57 AM
    • #8
    • 13th May 18, 9:57 AM
    I let my MA ramble on about insurance quotes because he was a nice chap and his boss was observing him. When his boss left the room I pointed out that his quotes were three times more expensive than the sort of quotes Iíd found myself.
    • Marvel1
    • By Marvel1 13th May 18, 10:52 AM
    • 3,626 Posts
    • 3,962 Thanks
    Marvel1
    • #9
    • 13th May 18, 10:52 AM
    • #9
    • 13th May 18, 10:52 AM
    I thought life nsurance was optional.
    • shortcrust
    • By shortcrust 13th May 18, 1:07 PM
    • 2,149 Posts
    • 3,311 Thanks
    shortcrust
    I thought life nsurance was optional.
    Originally posted by cjdavies
    I donít have it, but Iím single with no dependents and really donít care what happens post Shortcrust. Is it perhaps needed when there are two people on the mortgage?
    • GoingOn30
    • By GoingOn30 13th May 18, 4:39 PM
    • 106 Posts
    • 73 Thanks
    GoingOn30
    Of course your advisor is pushing these as he will make a pretty penny in commission!
    Life insurance is optional, I don't have any as I have no kids (and no immediate plans for kids) and a good "death in service" benefit from my employer. I would get it once I had a child though.
    • davidmcn
    • By davidmcn 13th May 18, 4:52 PM
    • 9,064 Posts
    • 9,651 Thanks
    davidmcn
    I donít have it, but Iím single with no dependents and really donít care what happens post Shortcrust. Is it perhaps needed when there are two people on the mortgage?
    Originally posted by shortcrust
    No, it's not compulsory. Used to be in ye olden days. Sensible if you want to make sure that the rest of your household don't need to sell up and move somewhere cheaper.
    • G_M
    • By G_M 13th May 18, 6:52 PM
    • 45,851 Posts
    • 55,337 Thanks
    G_M
    Yes of course it's optional.


    But sensible if you have dependents who would struggle to pay for/keep the property if you died. (unless you don't care what happens to said dependents of course....)
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