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  • FIRST POST
    • saant22
    • By saant22 14th May 18, 4:53 PM
    • 5Posts
    • 0Thanks
    saant22
    mortgage protection/ life insurance
    • #1
    • 14th May 18, 4:53 PM
    mortgage protection/ life insurance 14th May 18 at 4:53 PM
    hello,


    FTB here looking for advice. Currently applying for a mortgage with Natwest via A broker, who also applied for the mortgage protection ect. I have just recieved the documents and the brokers comission is 2500.00 which is included in out Premium.

    am i being ripped off or is this standard?


    the policy is a joint one, includes critical illness but is for only half of the value of the mortgage?


    what do you think? should i look for my own?
Page 1
    • ACG
    • By ACG 14th May 18, 5:15 PM
    • 16,833 Posts
    • 8,784 Thanks
    ACG
    • #2
    • 14th May 18, 5:15 PM
    • #2
    • 14th May 18, 5:15 PM
    Critical Illness is expensive, not many people can afford to cover their full Mortgage, but it is a lot more likely to pay out than life insurance.

    On a personal level (not professional level), I prefer income protection. It pays a monthly income if you are unable to work due to accident or illness. You can pay yourself anything up to around 65% of your annual income, it means you have a guaranteed income if you can not work for any reason (other than lazyitus). No lump sum payouts but you know your bills will be paid each month.

    As a general rule of thumb, the commission is around double what the annual premium is, so on 2500, I would expect the premium to be around 105 a month.
    I am a Mortgage Adviser
    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.
    • dunstonh
    • By dunstonh 14th May 18, 5:21 PM
    • 92,613 Posts
    • 59,930 Thanks
    dunstonh
    • #3
    • 14th May 18, 5:21 PM
    • #3
    • 14th May 18, 5:21 PM
    am i being ripped off or is this standard?
    Banks are one of the most expensive places to buy financial products. Last time I was up against a bank the premium was over 50pm lower us using a better product.

    You should have had the quote before you made the application.

    CIC is more likely to pay out than life assurance. Life assurance is dirt cheap. CIC is more expensive reflecting the level of payouts expected.
    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.
    • saant22
    • By saant22 14th May 18, 5:58 PM
    • 5 Posts
    • 0 Thanks
    saant22
    • #4
    • 14th May 18, 5:58 PM
    • #4
    • 14th May 18, 5:58 PM
    Thank you for your responses.

    We did have the quote prior to submitting the application however we were not informed that this included the commission. Perhaps naive of me but I have never applied for a mortgage before or had to have a life insurance policy.

    I just wanted to know if this is standard practice or whether I should look for my own policy.

    Thanks
    • ACG
    • By ACG 14th May 18, 6:04 PM
    • 16,833 Posts
    • 8,784 Thanks
    ACG
    • #5
    • 14th May 18, 6:04 PM
    • #5
    • 14th May 18, 6:04 PM
    You can get it cheaper through one of the online sites, but you lose the benefit of advice.

    If the policy turns out to be incorrect, not sufficient etc etc then its on your head be it.

    If I am getting a lot of commission I do sometimes reduce the premium, especially if I am earning a lot through the Mortgage, surprisingly it does not have a massive impact on the premiums.
    I am a Mortgage Adviser
    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.
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