Mortgages & life/critical illness cover - talk to me
Discussion
So the other half and I are moving in together, which means our first mortgage. No problems with deposit, and we have an agreement in principle, I'm just a bit lacking in knowledge on life cover in relation to mortgages and could do with some idiot-level advice.
Obviously the mortgage broker is keen for us to go with him for this cover, and I have always heard you should get it yourself from elsewhere. But why? What should I be looking for? I don't mind the idea of critical illness cover (I know it's not mandatory but at the right price I'd rather have it), any pointers for good providers?
Obviously the mortgage broker is keen for us to go with him for this cover, and I have always heard you should get it yourself from elsewhere. But why? What should I be looking for? I don't mind the idea of critical illness cover (I know it's not mandatory but at the right price I'd rather have it), any pointers for good providers?
D-Angle said:
So the other half and I are moving in together, which means our first mortgage. No problems with deposit, and we have an agreement in principle, I'm just a bit lacking in knowledge on life cover in relation to mortgages and could do with some idiot-level advice.
Obviously the mortgage broker is keen for us to go with him for this cover, and I have always heard you should get it yourself from elsewhere. But why? What should I be looking for? I don't mind the idea of critical illness cover (I know it's not mandatory but at the right price I'd rather have it), any pointers for good providers?
Why do you think you should get this elsewhere?Obviously the mortgage broker is keen for us to go with him for this cover, and I have always heard you should get it yourself from elsewhere. But why? What should I be looking for? I don't mind the idea of critical illness cover (I know it's not mandatory but at the right price I'd rather have it), any pointers for good providers?
PistonBroker said:
Yes, why's that?
I ask as someone who can't provide you with a mortgage but could arrange the insurances. It's always struck me as logical to get it from the Mortgage Advisor.
The only reason I can think of is if the Broker states that they are single tied to one provider?? Which is rare these days unless the "broker" is a branch advisor at a bank................I ask as someone who can't provide you with a mortgage but could arrange the insurances. It's always struck me as logical to get it from the Mortgage Advisor.
Occurs to me that wasn't very helpful!
Decreasing term is conventional with a mortgage - level of cover decreases in line with the mortgage. But consider level term and whole of life. It'll cost more now but will be worth it in the long run.
Have it as two separate policies rather than one joint policy.
You're more likely to claim on Critical Illness than you are on Life cover. So definitely worth considering. But, again, it'll be more expensive for that very reason.
On that note, also consider Income Protection. More expensive still but guess why. ;-)
Get it written in trust. If the advisor's worth his or her salt they'll suggest that anyway.
Best of luck!
Decreasing term is conventional with a mortgage - level of cover decreases in line with the mortgage. But consider level term and whole of life. It'll cost more now but will be worth it in the long run.
Have it as two separate policies rather than one joint policy.
You're more likely to claim on Critical Illness than you are on Life cover. So definitely worth considering. But, again, it'll be more expensive for that very reason.
On that note, also consider Income Protection. More expensive still but guess why. ;-)
Get it written in trust. If the advisor's worth his or her salt they'll suggest that anyway.
Best of luck!
Sarnie said:
Why do you think you should get this elsewhere?
Conventional thinking seems to be that mortgage providers will overcharge as most people will just go with them and get it all done together rather than shop around. I'm always a bit dubious with insurance (paying money and hoping nothing happens that means you want some of it back) but appreciate the necessity of it, I'm just trying not to get ripped off. Some very good advice already and I may be dropping a couple of people a message, thanks.
D-Angle said:
Conventional thinking seems to be that mortgage providers will overcharge as most people will just go with them and get it all done together rather than shop around.
I'm always a bit dubious with insurance (paying money and hoping nothing happens that means you want some of it back) but appreciate the necessity of it, I'm just trying not to get ripped off. Some very good advice already and I may be dropping a couple of people a message, thanks.
"Conventional thinking seems to be that mortgage providers will overcharge as most people"I'm always a bit dubious with insurance (paying money and hoping nothing happens that means you want some of it back) but appreciate the necessity of it, I'm just trying not to get ripped off. Some very good advice already and I may be dropping a couple of people a message, thanks.
Thats where you are going wrong...................mortgages providers............provide...........erm...........mortgages!
I think the answer to this one is the same as for most products that sometimes can be a little complex.
If you're willing to take the time to read up yourself or already know the specific type of cover you would like and the nitty gritty bits about writing the insurance in trust (this can be done yourself if you know what you're doing).
On the flip side if you want a professional who knows the industry rather well, you don't already know the ins and outs and you don't want to take the extra time to research then a well recommended mortgage advisor can give some good advice.
I think the predisposition for people avoiding going with the advisor for everything and my own view is that just because that individual knows the mortgage market like the back of their hand doesn't mean they also know life insurance/CIC, in my experience it was also about 50% cheaper to source my own policy which wasn't a whole lot of effort (but i should mention that i work in the same industry which makes things a little easier).
So in essence you can always go with the same advisor if you want an easier ride but if you want to make sure you have the best policy for you/cheapest policy it may be worth doing some legwork yourself but getting it wrong can be pretty severe.
If you're willing to take the time to read up yourself or already know the specific type of cover you would like and the nitty gritty bits about writing the insurance in trust (this can be done yourself if you know what you're doing).
On the flip side if you want a professional who knows the industry rather well, you don't already know the ins and outs and you don't want to take the extra time to research then a well recommended mortgage advisor can give some good advice.
I think the predisposition for people avoiding going with the advisor for everything and my own view is that just because that individual knows the mortgage market like the back of their hand doesn't mean they also know life insurance/CIC, in my experience it was also about 50% cheaper to source my own policy which wasn't a whole lot of effort (but i should mention that i work in the same industry which makes things a little easier).
So in essence you can always go with the same advisor if you want an easier ride but if you want to make sure you have the best policy for you/cheapest policy it may be worth doing some legwork yourself but getting it wrong can be pretty severe.
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Check out the explainer videos on the website to give you more information on the products.
Always pays to get a few quotes from different brokers/providers.
0116 366 6866
Halo Consulting
Check out the explainer videos on the website to give you more information on the products.
Always pays to get a few quotes from different brokers/providers.
PistonBroker said:
Sarnie said:
Why do you think you should get this elsewhere?
Yes, why's that? I ask as someone who can't provide you with a mortgage but could arrange the insurances. It's always struck me as logical to get it from the Mortgage Advisor.
Also to the OP, don't get me wrong having cover isn't a bad idea but you don't need it to get a mortgage. Consider the what ifs and don't over insure yourselves unnecessarily. Obviously if you've got kids then it's a lot more important but if it's just the two of you ask yourself where would you be if the other half croaked, if you can afford the mortgage on one salary then no massive need to insure, or maybe you wouldn't then need the 3-4 bedroom house so could downsize accordingly. If you both meet some tragic end then who would you be leaving it all to and do they really need that money. If it's you parents then they probably don't.
Presume you have done this and maybe is not provided by your current employers.
Worth checking both yourself and partners benefits regarding life insurance that may already be provided by your employer.
It may be that you have the required cover already and could be spending money that you don't have to on the life insurance part.
Worth checking both yourself and partners benefits regarding life insurance that may already be provided by your employer.
It may be that you have the required cover already and could be spending money that you don't have to on the life insurance part.
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