Life Assurance problem

[jericho]

I'm moving my mortgage after spending only a year with my previous provider. (Its a staff mortgage so worth moving as all fees/ costs are paid) Problem is that my life cover is now only for 29.5 years, and so my new lender said I can either sign a waiver, or get new life cover. Taking out a new life policy is a big hassle since I need to sign off the mortgage within the next 2 weeks. My understanding is that according to the policy I'll just be slightly underinsured, (ie, cover will be slightly less than the mortgage at any given time) which is not that big a deal. Are there any other potential issues that I've not taken into account?

 

[PM1234]

I'm guessing if your new lender is letting you sign a waiver, the mortgage term is over 30 years and you're short 6 months? If its just mortgage protection assurance, signing a waiver shouldn't prove any problems, provided any dependents are able to cover the shortfall?

 

[upport]

Sign the waiver and continue paying existing policy premium payments.Apply for new life policy and assaign to new lender upon policy issue,and then cancell original policy if you wish.This way there will be no delay in issuing mortgage and you will have correct mortgage protection in place assuming that you are accepted for cover.

 

[NHG]

Get the mortgage term to match your life cover or for a term slightly shorter than the life cover. I did this a few years ago with no problem.

 

[jericho]

Get the mortgage term to match your life cover or for a term slightly shorter than the life cover. I did this a few years ago with no problem.

Mortgage has already been approved and so I dont want to reapply for a shorter term. And the life policy is non covertible, so I'm stuck with it. I guess I'll draw down the mortgage and review the life cover next year. Thanks for the advice.