Bargin Life Insurance

[Davidium]

Hi Guys,

I was wondering if anyone could provide some suggestions on where would be the best place to get life insurance from? I have to get it for my mortgage however I would prefer not to have it with the lender so that it goes to my estate and not the Lender (to the best of my knowledge)

Regards,

Dave

 

[Vanilla]

It doesnt matter where you get it from. You have to assign your life policy to the financial institution so that in the event of your death the proceeds go to pay off the mortgage. Although you may find better value from shopping around.

 

[Hel_n]

It doesnt matter where you get it from. You have to assign your life policy to the financial institution so that in the event of your death the proceeds go to pay off the mortgage. Although you may find better value from shopping around.

Not all lenders require an assignment of a life policy. Most do though, so if your lender requires your policy to be assigned you won't be able to avoid this by taking out a policy with another insurer. But as Vanilla stated you may be able to find a cheaper policy by shopping around.

 

[moneyhoney]

If you want your estate to get money if you die, then you can always get a life insurance policy separate from your mortgage protection. But under law you do have to have a mortgage protection policy so that if you die during the term of the mortgage it will be paid off (there are some exceptions to this, like if you're over 50, can't get insurance, your lender doesn't have to make sure you have it)

 

[shilling]

It is a stipulation of the Consumer Credit Act 1995 that a mortgage taken out on a Principal Residence is taken in conjunction with a Mortgage Protection Policy so that the mortgage will be paid of in the event of the death of the borrower. In very few situations will the lender waive the condition of Mortgage Protection Policy-as per post above, Over 50, Unable to get insurance...