Having hit some health issues in the 10 years since I took out my mortgage, I'm kind-of kicking myself that I didn't take convertible term cover in the beginning - Not saying it's the right thing for everybody, but don't assume that you'll always be healthy.gg66 said:So I'm leaning towards getting the cheapest deal and going with that.
Have you read this thread and the many existing threads on mortgage protection and general life assurance?
thanks, will look them up, online quotes are useful for getting an idea of costs.Try Tesco or LAbrokers for online quotes.
No problem - With convertible term, I'd have the security of knowing that I could extend the policy at the end of the current term at the same prices. Unfortunately now, I have to take out a new policy and go through various health checks (including report from my GP) to get a new policy at significantly higher rates.gg66 said:Rainyday, do you mind explaining how the convertible term would have benefited you if you had taken it out originally, still getting my head around the whole thing..
RainyDay said:No problem - With convertible term, I'd have the security of knowing that I could extend the policy at the end of the current term at the same prices. Unfortunately now, I have to take out a new policy and go through various health checks (including report from my GP) to get a new policy at significantly higher rates.
Yesgg66 said:Does a convertible term cost more initially?
I don't think it's an either/or choice. A pension is to provide for you in retirement. Life insurance is to provide for your dependants if you die.gg66 said:and would one not be better off investing in a pension v life insurance?
RainyDay said:I don't think it's an either/or choice. A pension is to provide for you in retirement. Life insurance is to provide for your dependants if you die.
This makes sense, though just make sure you check the small print on the pensions policy to see who benefits if you die. Make sure you don't over-insure, i.e. if you don't have dependents, do you really need life insurance?gg66 said:I guess I was thinking of a term life insurance for the lenght of the mortgage, and working on building a pension longer term. If I die before the mortgage is paid the Bank get their money, any dependents get whatever pension I've saved (does it work like that). If I live longer my pension looks after us.
RainyDay said:This makes sense, though just make sure you check the small print on the pensions policy to see who benefits if you die. Make sure you don't over-insure, i.e. if you don't have dependents, do you really need life insurance?
Yes, or provided that it's term assurance (which pays any excess over the outstanding mortgage balance to your estate), you might choose to keep up the payments to continue the insurance cover.gg66 said:BTW, if I pay off the mortgage early, I assume i can stop making insurance payments?
RainyDay said:No problem - With convertible term, I'd have the security of knowing that I could extend the policy at the end of the current term at the same prices. Unfortunately now, I have to take out a new policy and go through various health checks (including report from my GP) to get a new policy at significantly higher rates.
So I guese you only really benefit if you have some seriou illness that would otherwise bump up your insurance costs.What the conversion option does is allows you to continue without providing medical evidence.
Depends what you consider 'serious' - Even elevated blood pressure (which is very common) will impact your insurance costs.gg66 said:So I guese you only really benefit if you have some seriou illness that would otherwise bump up your insurance costs.
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