Mortgage life insurance ?


T

Tonyb

Hi, my children are starting to think about mortgages. I had an endowment
policy in the past so didn't need life insurance for my mortgage.
I wandered what the rules/advice is about life insurance for to cover
mortgages these days ? Do mortgage lenders require that as standard ? I
assume you can have your own policy not the lenders ? Can you use any life
insurance policy that covers the term of the mortgage for that purpose ?
Thanks
Tony
 
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T

tim......

Tonyb said:
Hi, my children are starting to think about mortgages. I had an endowment
policy in the past so didn't need life insurance for my mortgage.
I wandered what the rules/advice is about life insurance for to cover
mortgages these days ? Do mortgage lenders require that as standard ?
Usually yes.
I assume you can have your own policy not the lenders ? Can you use any
life insurance policy that covers the term of the mortgage for that purpose
?
dunno

tim
 
M

Mark

Hi, my children are starting to think about mortgages. I had an endowment
policy in the past so didn't need life insurance for my mortgage.
I wandered what the rules/advice is about life insurance for to cover
mortgages these days ? Do mortgage lenders require that as standard ?
Not all of them, for sure. Mine doesn't. Maybe it would be different
for larger LTVs.
I
assume you can have your own policy not the lenders ? Can you use any life
insurance policy that covers the term of the mortgage for that purpose ?
I would assume most don't mind. I would avoid any lender that
restricts from whom you can buy assurance and insurance. It would
almost certainly end up more expensive.
 
C

cryptogram

Hi, my children are starting to think about mortgages. I had an endowment

policy in the past so didn't need life insurance for my mortgage.

I wandered what the rules/advice is about life insurance for to cover

mortgages these days ? Do mortgage lenders require that as standard ? I

assume you can have your own policy not the lenders ? Can you use any life

insurance policy that covers the term of the mortgage for that purpose ?

Thanks

Tony
To have life assurance is prudent (if there are two people sharing the loan) but not normally a requirement. Neither is it normally necessary to buy it from the lender. You might also consider some form of insurance to pay the loan if you fall ill or lose your job.
 
Y

Yellow

To have life assurance is prudent (if there are two people sharing the loan) but not normally a requirement. Neither is it normally necessary to buy it from the lender. You might also consider some form of insurance to pay the loan if you fall ill or lose your job.
When I had a mortgage and lived on my own with no dependents, I did not
bother with the expense of life insurance.
 
C

cryptogram

When I had a mortgage and lived on my own with no dependents, I did not

bother with the expense of life insurance.
No, neither would I in this situation. But I'd be considering what would happen if my salary stopped.
 
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M

Mark

No, neither would I in this situation. But I'd be considering what would happen if my salary stopped.
You will have to try living off £1/day. Tory MPs say it's really
easy.
 

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