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    • Paras
    • By Paras 11th Oct 18, 7:39 PM
    • 14Posts
    • 0Thanks
    Paras
    Help!! Homebuyers Insurance out of budget.
    • #1
    • 11th Oct 18, 7:39 PM
    Help!! Homebuyers Insurance out of budget. 11th Oct 18 at 7:39 PM
    Hi,

    I am a 52y old smoker, with hypertension and high triglycerides and low HDL. Both my parents and a sibling have been diabetic since age 55 years. Aegon, my insurance company, is imposing a 25% loading for my lipids and a 50% loading for the family history of diabetes. This takes premium to over 500 per month.

    Please could someone help me save money on this? I am desperate for advice. I am buying a new home and my current insurance premium is just 54 per month as I took this policy out in 2004. This new deal will break my back.

    Thanks
    Paras
Page 1
    • csgohan4
    • By csgohan4 11th Oct 18, 8:25 PM
    • 5,281 Posts
    • 3,381 Thanks
    csgohan4
    • #2
    • 11th Oct 18, 8:25 PM
    • #2
    • 11th Oct 18, 8:25 PM
    consider getting a broker to help find an insurer with lower premiums and cover acceptable to you
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • Paras
    • By Paras 11th Oct 18, 8:32 PM
    • 14 Posts
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    Paras
    • #3
    • 11th Oct 18, 8:32 PM
    • #3
    • 11th Oct 18, 8:32 PM
    Thanks for your reply csgohan

    consider getting a broker to help find an insurer with lower premiums and cover acceptable to you
    Sadly this was through a broker and he says it was reviewed by the Head of Underwriting. I am very stressed. Should I speak to another broker? We are very close to exchanging contracts and there is pressure from both sides on me to hurry.
    • dunstonh
    • By dunstonh 11th Oct 18, 10:04 PM
    • 96,074 Posts
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    dunstonh
    • #4
    • 11th Oct 18, 10:04 PM
    • #4
    • 11th Oct 18, 10:04 PM
    Was it an independent or whole of market broker? They are typically a fair bit cheaper than restricted advisers
    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.
    • Paras
    • By Paras 11th Oct 18, 11:37 PM
    • 14 Posts
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    Paras
    • #5
    • 11th Oct 18, 11:37 PM
    • #5
    • 11th Oct 18, 11:37 PM
    Thanks,

    Was it an independent or whole of market broker? They are typically a fair bit cheaper than restricted advisers
    This was a friend of a friend. He is a Financial Advisor and did it as a favour. I don't think this was a Whole of market search. Please could you recommend one? I need to be insured quickly.

    Thanks.
    • TrickyDicky101
    • By TrickyDicky101 12th Oct 18, 9:12 AM
    • 3,207 Posts
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    TrickyDicky101
    • #6
    • 12th Oct 18, 9:12 AM
    • #6
    • 12th Oct 18, 9:12 AM
    Why do you need to be insured quickly? Your mortgage lender will likely only require you to have buildings insurance in place from Exchange. You don't have to have life insurance.
    • SallyDucati
    • By SallyDucati 12th Oct 18, 10:26 AM
    • 83 Posts
    • 53 Thanks
    SallyDucati
    • #7
    • 12th Oct 18, 10:26 AM
    • #7
    • 12th Oct 18, 10:26 AM
    Why do you need to be insured quickly? Your mortgage lender will likely only require you to have buildings insurance in place from Exchange. You don't have to have life insurance.
    Originally posted by TrickyDicky101
    Indeed you don't have to have life insurance, it's a risk decision. I've had diabetes since I was 30 (now 48), smoke but am thinking about giving up. My sister has an issue with her heart. My premium quotes were very high and would have affected the value of the house I could buy so I decided to take the risk of not having insurance to live where I want to. I don't have any dependents or a partner though so it is only me I have to worry about, and I also have a lot of equity in the house.
    • Paras
    • By Paras 12th Oct 18, 12:09 PM
    • 14 Posts
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    Paras
    • #8
    • 12th Oct 18, 12:09 PM
    • #8
    • 12th Oct 18, 12:09 PM
    Why do you need to be insured quickly? Your mortgage lender will likely only require you to have buildings insurance in place from Exchange. You don't have to have life insurance.
    Indeed you don't have to have life insurance, it's a risk decision. I've had diabetes since I was 30 (now 48), smoke but am thinking about giving up. My sister has an issue with her heart. My premium quotes were very high and would have affected the value of the house I could buy so I decided to take the risk of not having insurance to live where I want to. I don't have any dependents or a partner though so it is only me I have to worry about, and I also have a lot of equity in the house.
    Trouble is, I have dependents in my family. I am the sole earner. I am always worried about them. I am prepared to pay the loading for my conditions and increase my Insurance budget. But this company's quote is exorbitant. I was hoping I could find a cheaper quote.
    • Aretnap
    • By Aretnap 12th Oct 18, 12:36 PM
    • 3,074 Posts
    • 2,607 Thanks
    Aretnap
    • #9
    • 12th Oct 18, 12:36 PM
    • #9
    • 12th Oct 18, 12:36 PM
    What sort of insurance are you actually taking about? Life insurance? Critical illness? Income protection? All three?

    If you have an existing policy what's wrong with just keeping it? Certainly you should not cancel whatever protection you ashtray have in place as any new policy will almost certainly be more expensive. If you have a need for more cover (eg because the new mortgage will be significantly larger than the old one) taking out an additional policy to top up the old one will be cheaper than starting from scratch.

    Consider how much protection you actually need, eg do you actually need life insurance - is there anyone who is financially dependent on you who would be unable to pay the bills in the event of your early death? (Never mind that last bit - cross posted with your post above)
    Last edited by Aretnap; 12-10-2018 at 12:39 PM.
    • Weighty1
    • By Weighty1 12th Oct 18, 12:51 PM
    • 402 Posts
    • 187 Thanks
    Weighty1
    Did your broker explain about the likely premium increase before the application was submitted? If not, bin them and use a broker who can manage your expectations better.

    They should be discussing your personal circumstances with the underwriters and then seeing how different companies compare.

    I've got to say though, the risk you're presenting isn't a great one. Elevated cholesterol/trigs etc and smoking isn't a great risk and then the family history isn't great either.
    • Paras
    • By Paras 12th Oct 18, 6:49 PM
    • 14 Posts
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    Paras
    Artnap said ...
    What sort of insurance are you actually taking about? Life insurance? Critical illness? Income protection? All three?
    Only Life Insurance to cover Mortgage.

    If you have an existing policy what's wrong with just keeping it?
    This is a new mortgage with a different lender. So the old cover will not be applicable I believe.
    Will I not need to disclose my current medical conditions in order to transfer any cover?

    Weighty said ...
    QUOTE]Did your broker explain about the likely premium increase before the application was submitted?[/QUOTE]

    He did give me an estimate that was around 300 but then the Insurance agency dropped the bombshells of all these loads (25% for low HDL and 50% for Family History of diabetes).

    I've got to say though, the risk you're presenting isn't a great one. Elevated cholesterol/trigs etc and smoking isn't a great risk and then the family history isn't great either.
    Sounds reassuring. I think I should shop around. Any suggestions?

    Thanks
    • dunstonh
    • By dunstonh 12th Oct 18, 7:01 PM
    • 96,074 Posts
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    dunstonh
    Will I not need to disclose my current medical conditions in order to transfer any cover?
    Yes.

    If the conditions are serious, then the existing insurer may have a guarnateed insurability option. This is often able to be activated on things like childbirth or moving house. Not all insurers offer it but some do. And they can still price on the risks they are taking on. i.e high risk = high price.
    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.
    • Aretnap
    • By Aretnap 12th Oct 18, 8:30 PM
    • 3,074 Posts
    • 2,607 Thanks
    Aretnap
    Only Life Insurance to cover Mortgage.
    Originally posted by Paras
    Are you sure? Assuming you have a relatively normal sized mortgage, 500/month sounds extremely expensive for life insurance only, even with your age and the loadings. Even 50/monthis on the pricey side - it's more than I pay for life and critical illness cover for a house I bought about the same time. Are you sure it doesn't include critical illness cover? (Critical illness cover tends to be several times more expensive than plain life cover).


    This is a new mortgage with a different lender. So the old cover will not be applicable I believe.
    I suspect that you're mistaken on that. It's a common misconception, but in the vast majority of cases, while the life insurance may have been bought to cover a particular mortgage, it is not explicitly tied to the mortgage. Instead it pays out a fixed sum - or a sum that decreases over time according to a pre-set formula which is intended to mirror the rate at which you pay off a mortgage. So long as you keep paying your premiums, if you die during the term of the policy then it pays out that sum, regardless of whether you still have the original mortgage, you've transferred it to another company, or you've paid it off entirely.

    So check exactly what cover you already have - but if you're not significantly increasing the size of the mortgage and/or its term, then it's likely that you already have adequate cover.* If you are increasing it significantly then you may well want some additional cover, but you should only need to look for a policy large enough to cover the shortfall, not the entire new mortgage, and that should help to keep the cost down.


    *Adequate to cover the mortgage at least. Of course should you die early or become too ill to work your dependants would presumably have bills to pay over and above the mortgage - you might want to give some thought to what provision you should make for that.
    • kingstreet
    • By kingstreet 13th Oct 18, 8:10 AM
    • 34,472 Posts
    • 18,716 Thanks
    kingstreet
    As dunston said, check your existing cover for guaranteed insurability options. These may save you money if you have them.
    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.
    • Paras
    • By Paras 17th Nov 18, 9:05 AM
    • 14 Posts
    • 0 Thanks
    Paras
    Really sorry about the late response. I have been taken over by the stress of buying the new home. Thanks for all your advice. I eventually decided to go for the one in hand as meanwhile the chain was at the risk of falling through. A bigger issue than the insurance. I really appreciate your help guys. Thanks a bunch all.
    Paras
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