RE: Advice about mortgage protection and life assurance?

[elcoburno]

Hi,

I’m planning on buying a house soon and I’ve been told by my bank that I need both mortgage protection and life assurance? I thought they were pretty much the same thing bar optional extras of illness cover? Would someone be able to explain whether I need both and if so is it wise to combine the two in the hopes of a discount? Any suggestions on cheap providers? I'm a 25 year old smoker!

 

[NorfBank]

To drawdown your mortgage you just need mortgage protection, this will clear the mortgage if you die during the term of the policy.

If you have a partner or children then you should also take out a life insurance policy as this will leave a lump sum that they can invest in order to replace the loss of income from your death. All very morbid!

There is a list of discount brokers on the site:



If it is just mortgage protection you need then price is the main concern so get the cheapest cover available, if you need life cover then you should take independent financial advice.

 

[csirl]

Beware that the terms "mortgage protection" and "life assurance" can be used differently by different people.

The only thing you need is life insurance that pays the balance of your mortgage if you die, whatever they call it.

 

[elcoburno]

Thanks Norfbank!

I'm hoping the person I spoke with from the bank was mistaken as they seemed to suggest I had to have life assurance before I can drawdown on the mortgage! Good to know this isn't the case! No dependants just yet so I'll take your advice and shop around for the mortgage protection! Thanks again!