Buying with a friend - Life Insurance

S

Sweet Pea

Registered User
Messages
145
Hi,

I have bought an apartment with a friend. We are both first time buyers and are both trying to get our life insurance set up. We will be taking out separate policies. The intention is that we will live in the apartment for a minimum of two years and then will both sell or one can buy the other out.

I had decided that I just wanted to take out basic mortgage protection but then went to see a broker and he is trying to convince me to take out Level Term. Just wondering if anyone could give me any advice/input as to what option they would go for. A flexible whole of life policy which could be transferred to future properties is out of the question at the moment as it is way too expensive!

I'm 34 and female. I have no dependents.

The property that I need cover for will probably be sold in a couple of years time so I will need to take out a new life insurance policy.

This is what the Broker advised:

If I take out just standard mortgage protection and we sell the property in 2 years time say, I will need to take out a whole new policy then, by which stage I will be 37/38 and it will cost me treble what it's costing me now.

If I take out the Level Term for the amount of the mortgage now, myself and my friend sell in 2 years time, I go on to buy a property on my own which has a higher mortgage (say €100K more) than the current one with my friend, I simply take out a new policy for the extra €100K and keep the original policy for the current amount. So therefore I would have two policies and would only be paying a higher premium on the extra €100K.

What do you think would be the best option - there's about €30 per month difference between the two but I am very tempted to just go for the cheaper option as I will be put to the pin of my collar with mortgage payments! Would I be better off paying the extra money now so I don't regret it in a few years time?

Thanks
Sweet Pea
 
Have you read this thread? In many cases the cheapest form of decreasing term policy will do and any additional general life assurance requirements or future property purchases dealt with separately. The broker may have a vested interest (e.g. higher commissions) in "upselling".
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question.
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question.
 
HI ClubMan,

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HI ClubMan,

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HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am none the
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am none the wiser
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am none the wiser -
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am none the wiser - it
 
HI ClubMan,

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HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am none the wiser - it seems to me
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am none the wiser - it seems to me to
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am none the wiser - it seems to me to be
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am none the wiser - it seems to me to be a
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am none the wiser - it seems to
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am none the wiser - it seems to me to be a gamble.
 
HI ClubMan,

Thanks, yes I read through all the key posts on this before posing the question. I really am none the wiser - it seems to me to be a gamble.
 
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