Mortgages and Life Insurance advice...

    First Previous
  • silentbob 30 Oct 2005 11:47:16 29,527 posts
    Seen 1 year ago
    Registered 19 years ago
    Sorry - easily the most tedious thread I've ever created (second only to my washing machine thread :) - but I need advice, and this place has proved invaluable in the past so here goes.

    OK, we're in the middle of buying a house / sortign morgages at the moment. we have been approved with HSBC and everything seems hunkydory so far.

    But, I do not currently have any life insurance and need to start seriously considereing this as well as maybe critical illness cover for my new mound of debt.

    Can anyone offer any advice? Specific questions I have at present are:

    - What's the recommended amount of life insurance to take up? as much as you can afford or just enough to cover the house etc?

    - Is Critical Illness protection worth getting?
    - Is Income protection worth the extra heft?

    ANY advice or previous experiences are much appreciated from any of you.

    Thanks in advance.
  • Angel_Treats 30 Oct 2005 11:56:44 11,070 posts
    Seen 8 years ago
    Registered 17 years ago
    Do you have life insurance through work? Like a death-in-service type of thing. If I die, work pays out four times my salary which would probably cover the cost of a small flat.
  • Angel_Treats 30 Oct 2005 12:01:12 11,070 posts
    Seen 8 years ago
    Registered 17 years ago
    Outside of the office you mean? I know mine is death in service, and if I die while working for the company (but not only while on company premises!) then they'll pay out.
  • silentbob 30 Oct 2005 12:07:08 29,527 posts
    Seen 1 year ago
    Registered 19 years ago
    Angel_Treats wrote:
    Outside of the office you mean? I know mine is death in service, and if I die while working for the company (but not only while on company premises!) then they'll pay out.
    I'm pretty sure I don't have this AT, and in any case I would imagine that I would need Life and Critical cover regardless.

    Furbs, I intended to include critical illness cover - in fact I have just got a quote from Sainsbury's (no really) which is incredibly low and includes illness cover!
  • ssuellid 30 Oct 2005 12:19:20 19,141 posts
    Seen 1 hour ago
    Registered 20 years ago
    Check which illnesses they cover. Some policies are worth fuck all as the list of illnesses covered is pretty limited.
  • silentbob 30 Oct 2005 12:31:15 29,527 posts
    Seen 1 year ago
    Registered 19 years ago
    ssuellid wrote:
    Check which illnesses they cover. Some policies are worth fuck all as the list of illnesses covered is pretty limited.
    Yer - gonna have to look a little deeper into this TBH. Furbs - it's actually Legal and General doing teh insuring - Sainsbury's offering their 'brand' on top I guess.
  • ssuellid 30 Oct 2005 13:07:58 19,141 posts
    Seen 1 hour ago
    Registered 20 years ago
    Legal and General cover seems ok - thats what I have. Something to remember in the future is if you do move to a more expensive house then its generally cheaper to keep your existing cover and then get a new policy to cover the shortfall.
  • silentbob 30 Oct 2005 16:01:54 29,527 posts
    Seen 1 year ago
    Registered 19 years ago
    ssuellid wrote:
    Legal and General cover seems ok - thats what I have. Something to remember in the future is if you do move to a more expensive house then its generally cheaper to keep your existing cover and then get a new policy to cover the shortfall.
    Ah ok. Would you not end up with a somewhat unwieldy set of policies that way?

    /knows nowt
  • bainbrge 30 Oct 2005 16:59:49 1,687 posts
    Seen 3 months ago
    Registered 18 years ago
    silentbob wrote:

    - Is Critical Illness protection worth getting?
    - Is Income protection worth the extra heft?

    ANY advice or previous experiences are much appreciated from any of you.

    Thanks in advance.

    No and no.

    UNLESS:

    you have children. If not, its a total waste of money. They don't even pay out until after about 6 months of unemployment anyway. Live on the edge!
  • Deleted user 30 October 2005 17:15:37
    Bob - I've just bought a house with the girlfriend and we HAD to get life insurance at minimum. I don't know if this is the same case for you, but it was required for us. But luckily it only costs 17 a month.
    As for critical Illness, well it's upto you.
  • Furbs 14 Jun 2007 22:45:51 45,740 posts
    Seen 3 weeks ago
    Registered 18 years ago
    When I was selling them (!) Critical Illness was always the one I'd reccommend to people, even ahead of life insurance (I know you dont believe me, but I always tried to do the best thing for customers). More and more serious illnesses are treatable, maybe not cureable, but you can certainly live, but not work with them. Its actually the only insurance I have (since all my other bits are covered under payment protection).

    On life insurance, imo, just take enough to cover the house. If worst comes to the worst, you at least have something to sell on. Unless you have a load of other seperate debts with no PPI.

    If you're shopping around, find out what their payout rates are. The industry average is around 50-60%. If HSBC are using Hamilton Insurance (which they should be by now since they aquired them 3 years ago), their payout is over 90% since they are one of the few that errs on the side of the customer if there is any grey area. They are also very competitive.
  • Furbs 14 Jun 2007 22:45:51 45,740 posts
    Seen 3 weeks ago
    Registered 18 years ago
    The only trouble with those is they often have more get out clauses than a standard insurance. You need to check especially what happens if you die outside of work (which statistically you are more likely to do) whilst still under contract.
  • Furbs 14 Jun 2007 22:45:51 45,740 posts
    Seen 3 weeks ago
    Registered 18 years ago
    Yeah, like loans, supermarkets do some of the best deals out there to be honest. I think Tescos use Lloyds TSB insurance and often (somehow) end up undercutting them!
  • OldenGamer 18 Jun 2008 14:04:01 2 posts
    Registered 13 years ago
    There are lots of places to start figuring out this stuff. I don't know how old you are but I got my life insurance at 35 and will worry about extra illness protection and such a bit later. You could look at Life insurance comparison sites.
    http://www.protected.co.uk/?tracking=K4FK6DQTG
    http://uk.moneto.eu/insurance/life-insurance/
    http://www.moneysupermarket.com/LifeInsurance/uk-life-insurance.aspx
    That should give you a good start to your search for the best rates!
  • TheSaint 18 Jun 2008 14:14:40 20,769 posts
    Seen 12 hours ago
    Registered 16 years ago
    Random bump.
  • Dougs 18 Jun 2008 14:18:03 99,664 posts
    Seen 2 hours ago
    Registered 18 years ago
    FSA have their own comparison site now. Looked at it yesterday, it's quite good.
  • Machiavel 18 Jun 2008 14:20:05 5,964 posts
    Seen 6 years ago
    Registered 19 years ago
    Personal opinion only, but I wouldn't bother unless it's compulsory. The chances of dying before you're sixty are surprisingly unlikely, critical illnesses likewise. I also recall when our building society was trying to sell us such stuff, surprisingly their quotes only covered half the cost of our mortgage loan, so we'd both have to snuff it to cancel the debt. Nice.

    Why not treat it like after-sales warranties and put some money aside instead? :)
  • TheSaint 18 Jun 2008 14:21:57 20,769 posts
    Seen 12 hours ago
    Registered 16 years ago
    Only his second post as well.

    Best advice I could give anyone moving would be to join quidco.

    You can make a fortune on all the stuff you need to buy anyway.
  • Machiavel 18 Jun 2008 14:35:24 5,964 posts
    Seen 6 years ago
    Registered 19 years ago
    /sotto voice

    D'oh.
  • Pirotic Moderator 10 Dec 2009 19:49:14 20,642 posts
    Seen 6 days ago
    Registered 20 years ago
    Hi all, still in the process of moving down to Bristol, hectic stuff.

    Quick question. The bank (mortgage lender) have sent me a "3rd party authority form to request employers reference"

    Any idea what that is? It sounds like they contact old employers but seeing as I was self employed I only assume it means they want to contact my current employer, is it just to check salary etc?
  • whiteside 10 Dec 2009 20:17:23 136 posts
    Seen 6 years ago
    Registered 14 years ago
    Will be to get your authority to request details from your current employer...... terms of employment (Temp or Perm), length of service and current remuneration.
    Standard stuff really.
  • Whatsfor 10 Dec 2009 20:39:12 2,187 posts
    Seen 7 years ago
    Registered 14 years ago
    Not related to Pirotic's enquiry but anyone taking out life insurance and critical illness should do it with two seperate policies, sometimes with two seperate companies. Its more expensive in the short term but you are better protected should the worst happen.

    If you have a joint policy and get cancer and survive you will get your illness payout. This will void your policy thereafter. To get a new policy will be stupid money with any company. Then you may struggle to get life cover. Should your illness comeback and you die you may be left uncovered.

    If you have two policies then they would both be paid out.
  • Deleted user 10 December 2009 20:43:27
    That's really good advice.
  • Whatsfor 11 Dec 2009 21:32:30 2,187 posts
    Seen 7 years ago
    Registered 14 years ago
    I have the odd useful nugget of information every now and again.

    The other 90% is horse shit.
  • Scurrminator 25 Aug 2010 15:19:12 9,045 posts
    Seen 1 week ago
    Registered 16 years ago
    Right. This seems like the thread title i might need.
    Short version of the situation.
    My partner took out a 75k mortgage to buy a flat several years ago. She moved out of their three years ago and has rented it out since. She has had a letter today stating that the tenants are moving out and that they will no longer rent the property out due to issues with other (asshole) tenants in the surrounding flats.
    We basically want rid of this place, fast. It's a ball and chain and she should never have bought it.
    It's doubtful it will go for the 75k she paid for it so what happens if there is shortfall?
    This is a shitty situation to be in and things are very much out of our control at present...
  • TheSaint 25 Aug 2010 15:22:53 20,769 posts
    Seen 12 hours ago
    Registered 16 years ago
    Was it an interest only mortgage?
  • Deleted user 25 August 2010 15:24:34
    I didn't think it was possible to buy a flat for 75k, you sure she wont get what she paid?
  • Scurrminator 25 Aug 2010 15:26:04 9,045 posts
    Seen 1 week ago
    Registered 16 years ago
    It's in frickin' coventry and the grounds are not looked after.
    The guy who owns the grounds is an old cunt!
    The flat itself is quite nice inside.
    Yes it was interest only (foolishly!); she had BAD advice when she bought this.
  • TheSaint 25 Aug 2010 15:30:51 20,769 posts
    Seen 12 hours ago
    Registered 16 years ago
    I would start by getting it valued by a decent local estate agent and then cross the negativity equity bridge if and when you get to it.
  • Scurrminator 25 Aug 2010 15:34:45 9,045 posts
    Seen 1 week ago
    Registered 16 years ago
    my question would be would we be able to pay this off as a monthly 'loan' rather than one lump sum?
  • First Previous
Sign in or register to reply

Sometimes posts may contain links to online retail stores. If you click on one and make a purchase we may receive a small commission. For more information, go here.