Mortgage life cover

Questions and Answers

What sort of Life assurance / mortgage cover do i need?

Q) We have an interest only mortgage and need to get some kind of cover for life insurance / endowment or mortgage assurance - we have no idea what to look for - we want it to pay off the mortgage should anything happen to either of us - can anyone advice?

A) You need a level term insurance policy to run the length of time your mortgage is left. Options you also have are Joint life first death - Meaning one policy with two people on it and the first person to die the money pays out and policy ends. Two Single Policies - For a small price more you can have a single policy of which when the one who owns the policy dies the money is paid out. The benefit of this is that something happens the both of you twice the money is paid out (two policies two pay outs) and someone else benefits ie children Just don't take out cover for the amount of your mortgage but consider - do you have loans, burial expenses, and money to recover from the lost of an income??? Just dont pick the cheapest policy but the company who seeks to pay out without little if any red tape. After all you pay insurance to claim on should something happens. Any problems contact me Life Insurance Specialist - goodfinances@hotmail.co.uk

Mortgage Monthly payments?

Q) We have recently applied for a mortgage of £100,000 which monlthly payments are £693 fixed rate for 3 years. This is based on a 100% mortgage and the fact that we both have bad credit, it does not include building and content insurnace of life cover etc? Is this a good deal anyway? We think that it is as we have been searching for a mortgage for a few months and due to the adverse credit haven't been getting a brilliant quote the max we could get before was £85,000 for £625 a month. I don't mean to should think, but when taking out separate building and content insurnace etc do you start to do that when you get the completion date? Will the estate agents a house you like is with will accept if you don't have it yet but you do have your mortgage in place? - hope that bit makes sense!

A) We have a 75% mortgage which is for £114,500 (as of August '06) and this costs us in the region of £605 per month if I remember correctly. It doesn't sound like a bad deal - however, please do consider the risks very carefully of a 100% mortgage. You could struggle later on. If you do buy like this, make sure that you are happy to stay in that property for a fair amount of time until the property market picks up again if there is a drop that leaves you in negative equity. We aren't on a big wage - we were lucky enough to have family help with deposits, but we know what a struggle getting a mortgage so I can see why you're doing it but please be careful. If you are in a situation where you can wait and save for a little longer to get some kind of deposit then I think that's wise. Especially as you have bad credit. You have to carefully consider if you can maintain all of the monthly payments for your mortgage and your credit (speaking from experience!). Please just think carefully.

Have endowment worth 15k; wish to cash it in & switch to repayment mortgage?

Q) I already have sufficient life cover through my employers and the extra cash would help pay off credit cards and reduce mortgage balance by around 10%. Would this be a wise decision? What else do I need to consider? I already have sufficient life cover through my employers and the extra cash would help pay off credit cards and reduce mortgage balance by around 10%. Would this be a wise decision? What else do I need to consider? Extra info: the endowment is relatively new and is not underperforming significantly, the decision to switch is not down to misselling as I fully understood the risks when it was taken out. What I really want to know was, aside from losing the life cover, are there any other caveats?

A) A conversation with a Independent Financial Adviser is your best option. The first meeting is usually free and without obligation. If its in your interest to do so you may be better off selling your policy in the traded endowment markets, you may get a higher price than cashing it in with your endowment company.

How do I get a life insurance policy in the UK that pays me a bonus at the end of the term if I don't claim?

Q) I want a new joint life insurance policy as we're moving home, but instead of the usual life and critical illness (the latter part of which I'm told rarely pays out anyway), I'd like a life insurance policy that will pay me on maturity, i.e. at the end of the term. My inlaws are forever getting sums of money for insurance policies they took out years ago, but I can't find out where to get one. I need at least £100,000 of life insurance for at least 20 years as it has to cover my mortgage if one of us dies. Am I looking for an endowment policy? How do I get one without finding a financial advisor?

A) Yes you would be looking for an endowment policy if you want a bonus at the end. However, be warned they are expensive and do not pay back as much as you think or are promised, hence all the problems over mis-selling of such policies. Also, they do not cover critical illness generally only life and injury. You would be better off with a basic life and critical illness policy coupled with a savings account for long term regular savings - one that you have to pay into for a set period of time. Most banks offer these savings plans and are willing to pay extra interest if you take out a current account with them too.

do i really need critical life insurance on a £30,000 motgage?

Q) i have life insurance, mortgage re payment protection, and sickness and redundancey.. i think im over insured. im paying about £30 a month for this critical lfe cover and thats only if i get ill with a critical ilness thats going to kill me off!.. would i be better sending this £30 over to my mortgage account a month as mine is so low.. i feel im being ripped off on a "might" happen

A) your better off where you are.

do i really need critical life insurance on a £30,000 motgage?

Q) i have life insurance, mortgage re payment protection, and sickness and redundancey.. i think im over insured. im paying about £30 a month for this critical lfe cover and thats only if i get ill with a critical ilness thats going to kill me off!.. would i be better sending this £30 over to my mortgage account a month as mine is so low.. i feel im being ripped off on a "might" happen

A) your better off where you are.

I have recently become widowed and my late husband had a loan in his name only unsecured.?

Q) he left £800 in his bank account and the mortgage was paid off with our life cover we had. The lenders are trying to find a way of using the equity in my house to pay the loan back, I have been advised that the house is automatically handed down to me his wife and they doesn't form part of his estate. Are there any solictors or people in the know who could give me some further advice I'm at my wits end with worry besides grief for my husband who died age 40 in August this year. Thanks...

A) If it is an unsecured loan, then they cannot use your home, also, if the loan was only in his name, there is no way they can claim the loan off you either! The only leg they have got to stand on is if he lied on the application, but with him dead, there is not much they can do about that either!

I have recently become widowed and my late husband had a loan in his name only unsecured.?

Q) he left £800 in his bank account and the mortgage was paid off with our life cover we had. The lenders are trying to find a way of using the equity in my house to pay the loan back, I have been advised that the house is automatically handed down to me his wife and they doesn't form part of his estate. Are there any solictors or people in the know who could give me some further advice I'm at my wits end with worry besides grief for my husband who died age 40 in August this year. Thanks...

A) If it is an unsecured loan, then they cannot use your home, also, if the loan was only in his name, there is no way they can claim the loan off you either! The only leg they have got to stand on is if he lied on the application, but with him dead, there is not much they can do about that either!

Those who say mothers should stay home for the first few years of a baby's life?

Q) How are you supposed to pay your mortgage and household bills, food etc? I'm expecting my first baby in December. My partner is a barman on a low wage. He is desperately trying to find a better paid job but with no success right now. There is no way we will be able to cover all our necessary bills on his wage because it is too low. I'm not talking about luxuries. Just food, roof over our head, clothing heating etc. I'll have to go back to work when my baby is about 3-4 months old because I have no choice. I hate the idea and would love to stay home with him but otherwise we will not be able to pau our mortgage and lose our home and I don't want my child to be brought up in a homeless shelter! Incidentally, before you say "you should have planned this before you had the baby" - I was told I couldn't have kids so we were not "planning" a baby, we were "planning" a childless life! I earned more than my partner in the job I was doing at the time. I'm in the UK and we can get child tax credit from the government which covers about 75% os childcare expenses. Also as my BF is a barman he often works nights and evenings, so if I can get a job in the day we can share the childcare between ourselves, there should always be one of us at home. Bumbleigh - my mum also stayed home with us to and it was not a good idea. Firstly we never had any money as my dad wasn't earning much and she wasn't contributing anything. Secondly she was very over protective and neurotic like you said your mother was, and we found it really hard to detach outselves from mum and home when it came time to start school. I don't see childcare as a bad thing but I hear so many people going on about how you should stay home it makes me feel like I'll be a bad mother if I don't. I just don't have the option. Debbie T - If I stayed at home we'd lose our house because even with tax credit, my partner's wage would not cover the mortgage. Would living in a homeless shelter (the council won't rehouse mortgage repossessions as they say its "intentionally homeless" be better for my child than a playschool? Plus I haven't bought new cloythes or had a holiday for years! We live on the breadline basically. Our income is about £200 a week and out of that £112 goes on the mortgage. Whoisit - Yes we have thought about finding a cheaper place to live but the only way we could do that would be to get a housing association/council house and the housing associations and councils round here have 5 year waiting lists for a property. There is no family member we could move in with - the only one who has the room is my mum and she doesn't want us to move in with her so either we keep paying our mortagage or we live in a B&B.

A) People would argue that in a PERFECT world, people would stay home with their kids the first few years. Obviously, if you don't have the means, I don't think its your fault and that doesn't apply to you. My mom stayed home with me, and I think it did more harm than good (shes quite overprotective and neurotic), and I have plenty of friends whos moms worked and they do fine. Children whos moms are in the work force also tend to have less sexist ideas - thats certainly a plus! (According to the results of a sociological study). I wouldnt worry about it - do what is best for your family, which happens to be providing for it - don't worry about what other people consider right or wrong.

Endowment policy advice needed?

Q) I have an endowment policy that is due to mature in 2013. There is no mortgage linked to this policy and I have been using it as a savings plan. The life insurance element of the policy is no good to me as if I die before it matures the life cover pay out would go to someone else (part of a divorce agreement). The insurance company are quoting a surrender value of apx £17K, with a forecast of around £30K if I wait until 2013. I will be 63 in 2013 and am worried that if I don't make 63, I won't see a penny of this and it'll all go to my ex. A solicitor has advised me that under the wording of the divorce agreement I could surrender the policy, invest the money more wisely and in the event of my death before 2013 my ex would only get the surrender value. It is bothering me that I am paying £700 a year into a policy that I may get no benefit from. Any advice please. To clarify, if my ex dies before me then I have sole rights to the policy and can nominate a new beneficiary for the life element. If I survive beyond the maturity date then I collect the £30K and the ex gets nothing.

A) If you pay into this policy for the next 7 years you will pay circa £4900 into it. The balance (compared to the surrender value today) Will increase by circa £13000. I would say keep it. If it is a 25 year policy then you have already made a profit if you cash it in £17K against £12600 paid in). Is there any way that you could write this policy outside your estate so it would then pass to your next of kin. Look on the bright side, if you do make 63 and you have cashed it in with a £17K payout and not kept it for £30K, then you will probably be a little miffed. I understand your feelings towards your ex however, I stand by my original statement to keep it. As the life expectancy in the UK for a female is circa 81, I Think you have a damn good chance of reaching the final date of the policy.

Is mortgage disability insurance a good idea?

Q) I have 90 day disability at work, but I would like to know my mortgage is covered should I become disabled. I am single and do not have family, so am less worried about life mortgage insurance than disability. But, I don't want to waste money either.

A) I would get whole life insurance outside of our employers program. Many times there is disability coverage, plus there is a cash value on whole life that can be borrowed against in the future for loans to yourself, like for other real estate purchases. If you're a non-smoker with no DUI's on your record its only like $25 per month. Money well spent!

Mortgage protection insurance?

Q) hello, i just took out a mortgage but didn't get insurance with the lender (C&G). I understand this is compulsary, so what options do i have now? i know i can just get a standard life insurance to cover the mortgage if i pop, but what about if i become ill? or unemployed? can anyone advise? been looking at loads of bank websites and they seem confusing...cheers. Term? is that paying a fixed amonut for the duration of the loan? but pays nothing if i become ill or out of work?

A) Ok I see this mistake all teh time on teh internet so once and for all. There are two things we are talking about here PMI which is compulsary on over 80% funding loans that will pay the bank a benefit if you default for any reason and your family gets no benifit. All of those postcards/letters/ whatever in the mail talking about mortgage continuation or mortgae protection are totally different. All those plans are what we call limited or express underwriting so they take a large group of healt situations and tag one rate on the group that may be good for the sick and twice the appropriateprice for the healthy plus they are unisex which removes the advantage for females. Unless you are really sick get a life insurance policy and if you want more than 100k, run away if a company tells you no medical to qualify as all goof insurance plaans have medicals

Mortgage Insurance ?

Q) I was looking into buying mortgage insurance to cover me in case something happens. I found out this existed when someone I know died very suddenly. I went to the bank where my mortgage is and they told me they only offer it on new loans( my mortgage is 2 years old ). I was not offered this protection when I applied for this mortgage ( actually it was a refinance of my original mortgage ) as I applied through a mortgage company.I was told the best thing to do now was take out a life insurance policy, which I already have, but that dosent cover my husband or myself if we lose our job or become disabled.Does anyone know where I could look into this or is it even worth it? The insurance company that carries my house and auto insurance does not offer mortgage insurance.Any help would be greatly appreciated! Thank You

A) Mortgage insurance is also called decreasing term. It's for the remainder of the mortgage, if you die, and only pays the payoff. It costs MORE than regular term. So, you're BETTER off if you buy a level term policy - it's cheaper, and it DOESN'T decrease each year. There's ALSO disability coverage. It's a different policy, and depending on your ages/health, it can be pretty expensive. Unemployment is NOT a private coverage in the us, you can ONLY get it through your state unemployment office. Talk to your agent that does house and auto - ask him if he sells level term coverage, and/or disability coverage. If he doesn't, ask him for a LOCAL referral. IF you're with a direct writer, ask a neighbor or friend who their local agent is. I really really strongly recommend dealing with a local agent. If you can't find one, these guys are pretty good, and licensed in most of the 50 states: www.zanderins.com

What type of Life Insurance is best for my husband and I? (We just purchased a home, we are both 23 years old)

Q) My husband and I are both 23 years old and we just purchased a home. We have been under pressure from our Insurance Agent and our Mortgage broker to obtain Life Insurance in case something happens to one of us. We would like to have coverage in case something happens. I know the importance of Life Insurance, as my mom was killed in a car accident when she was only 38. So, we want to be protected, and we want our house to be safe. We are pretty much clueless when it comes to Insurance policies. I ALREADY LOOKED UP THE INFO ON WIKIPEDIA, SO PLEASE DON'T GIVE ME MORE OF THAT. I want opinions on what the best kind of Life Insurance is for us. Term (but if it is a 30 year term, does that mean when we are for example 54 and something happens after the 30 years, we aren't covered???) or Permanant (whole life, and others). We didn't like the decreasing term policy our agent showed us. We have gotten 2 quotes for Term Life. Help us make an informed decision!!! Please! Dan, I don't have your email address!!!

A) This is a tough question, but this is Yahoo! Answers, so I'm here to help. First, bankrate.com is a well-known, excellent website that has a calculator for this (see below). If your insurance agent is "pressuring" you, I surmise that he/she is not acting in your best interest, but rather, his/hers. Purchasing life insurance, while prudent, is something that should be done with an advisor whom you trust completely and feel zero pressure. For more information, please visit your state's insurance department website. They provide objective information that will assist you in your purchase. Attached is a sample for the state I live in, Texas. Good luck, my young friends!

What type of Life Insurance should my husband and I get. We are both 23 and just purchased a home.?

Q) My husband and I are both 23 years old and we just purchased a home. We have been under pressure from our Insurance Agent and our Mortgage broker to obtain Life Insurance in case something happens to one of us. We would like to have coverage in case something happens. We are pretty much clueless when it comes to Insurance policies. I ALREADY LOOKED UP THE INFO ON WIKIPEDIA, SO PLEASE DON'T GIVE ME MORE OF THAT. I want opinions on what the best kind of Life Insurance is for us. GIVE ME DETAILS OF POLICIES AND WHAT THEY MEAN. WHAT CAN I DO WITH THEM? HOW DO THEY WORK? HOW DO WE BENEFIT? PROS & CONS? PRICES? I KNOW NOTHING! HELP! Term (but if it is a 30 year term, does that mean when we are for example 54 and something happens after the 30 years, we aren't covered?) or Permanant (whole life). We didn't like the decreasing term policy our agent showed us. We have gotten 2 quotes for Term Life, BUT I DON'T UNDERSTAND INSURANCE! Help us make an informed decision!!! Please!

A) Personally, I own a 30-year term insurance with $500,000 coverage and only pay about $48/month for it. I'm 24 right now and bought it when I was 23. So when I become 53, I hoping that most or all my financial obligations are paid off and that I have accumulated lots of money in my Roth IRA. If I still need life insurance at age 53, I can decrease my coverage amount to my family needs. At age 53, I shouldn't be thinking about life insurance. I should be thinking about whether I have enough saved toward retirement? I don't want to back to work when I retire. That's why I buy term and invest the difference. When you buy term, you are also suppose to have extra money left over to save toward retirement. When you buy whole life, you don't have any extra money because whole life is very expensive. In whole life policies, rate of return on savings is very low and if you want to use it, you have to BORROW it. Do you like to borrow your own money and pay it back? That's why I choose term insurance. Why should insurance have a savings plan attached to it and that when you die, your family only has access to the face amount and not the savings? So, if you want your family to have the best of both worlds, buy term and invest away each month.

can you mortgage your house or business to pay a funeral - friends mom just died unexpected?

Q) friends mom just died - the dad found her sitting in a chair dead. They own 3 buildings (business buildings - but not rented out however in prime section) and a house - however they have bad credit.They did not carry mortgage insurance. I dont know what to tell this friend as she is devasted from this. They need almost 10,000. None of the buildings are paid for either and the dad only gets social security. I thought maybe they could mortgage the house or something to handle the cost but I dont know. I personally have life insurance to cover this kind of stuff. Anybody have a clue as to what to do here or suggest?

A) Assuming your friend's dad is 62 or older, he is probably eligible for a reverse mortgage. Depending on how much equity he has in the home, a reverse mortgage would help him pay for the funeral costs and would give him a source of tax-free income. There are numerous pros and cons to consider - you can get more info about reverse mortgages at: http://reverse.mortgageous.com/ .

we just purchased a 200K piece of property. My husband is 67 yrs. old & we need either mortgage insurance or t

Q) We've purchased a 200K piece of property & need to have either mortgage insurance or term life to protect me. My husband is 67 yrs. old & I am 65 yrs. old. We can't find anyone to insure us for enough money. Does anyne know what alternatives we have? Some insurance companies only insure up to age 65 & others will only go up to 50K which is not enough to cover the property. Others only cover you until age 80 & we would like a 20 yr. policy.

A) Most agents should know how to structure a plan that looks like term insurance for your needs (ie. lowest possible level guaranteed premium, no accessible cash value, coverage terminates at a specified period of time). Unfortunately, there is a large knowledge gap in our industry because it is so complex. What state are you in? Email me and I'd be happy to help.

mortgage payment protection insurance question?

Q) Is this practically the same as term life except ins co will only pay the outstanding principal? As far as the ins premium goes, would they use the same scale that varies by age and pysical condition? Would they also cover disability, loss of jobs, etc?

A) A mortgage life insurance policy offered through your lender is a group term policy that pays using EITHER an amortization schedule OR by using the outstanding balance at the date of death, minus outstanding late fees. Mortgage disability polices typically pay the monthly amount due to the lender. These policies only pay up to a certain number of months, such as 24, 48 or 72 months. Benefits end when the disability ceases or the maximum benefit is paid. Premiums will vary according to age, but are not adjusted according to health. Typically, if an applicant has any health conditions, the coverage is declined. Mortgage unemployment insurance is available, but very few insurers are willing to cover this any more. Ask your mortgage lender if this is available. One thing to keep in mind is that the mortgage company is the beneficiary of any proceeds paid due to death or disability. These policies do not provide income directly to you. If you want income in the event of such a loss, speak with an agent and get quotes for a term life policy and/or disability income policy. I hope this helps.

hip replacement on the nhs?

Q) does anyone know what the minimum age is for a hip replacement on the nhs,my husband is 44 and at the moment is waiting for an appointment at the local hospital,he is in constant pain and has a job that requires him to be mobile,but the doctor has said that he will most probably have to wait because he is to young,if true this is so maddening ,the pain he has is damaging his quality of life and affecting our family too, how long would he have to wait,we are even thinking of topping up our mortgage to cover the cost of a private op,does anyone know what it would likely to cost.also does anyone have any advice on what he can you use for the pain.

A) Hi There is no such thing as being too young for a hip replacement. The surgeon should go by the amount of damage to the joint, the amount of pain and limited movement etc and effect on the persons quality of life. I had both my hips replaced on the NHS at age 24 (last year) Ive had arthritis since a child and my hips were awful. I was in agony I got to the stage when even thou im on a lot of drugs I couldnt even stand or put weight on my legs at all. I was worried about having them done but its made such a difference to my qaulity of life. I feel like a miricle has happened! Im a new person. I can walk about everywhere and have no pain or limp or anything! Obviously there are things and movements you cant do with hip replacements they arent as good as feel hips. You can crouch down with them at all! or do heavy sports and shouldnt run as it losens them etc. I would suggest he asks his doc to refer him to another surgeon or another near by hospital for a second opinion (you are allowed to do this on nhs) and see what someone else says. A hip replacement ive been told shouldnt be done until the hip is so worn that the amount of movement is serverly limited and the pain is no longer responding to other medication. Has he tried having steroid injections into the hip under ultra sound? They kept me going for a few years by doing that. They are pretty good. I think it may be worth seeing another surgeon. Tell him to go back to his gp. Good Luck with it all. X

Partners ex demanding £28,000.00...Opinions please?

Q) I've been with my partner for 2 and a half years and we've lived together for 18months. When I met him he had two houses, one of which his ex was renting from him. He was in alot of debt and both of his houses were about to be repossesed so I helped him out and paid most of his debt and saved both houses. His ex has given him nothing but grief since i've known him and she also put their 2 children at risk by living with a very violent man. She has now moved out of my partners house and we have sold it at a big loss because she left it in such a mess. He wants to give the children £10,000 each for their future but she says they should get £5000 each and she is demanding £28,000 for herself? This woman has never worked in her life and lives off the state.. The rent didn't cover the mortgage and my partner had to top that up by £130pm. That's aswell as £250pm maintenance. She also wants more maintenance?! They were never married. What do you think? Between us we have three houses. We planned to get married, sell all the houses and with the combined equity, buy a bigger house. I have already told him that there will be no marriage if he pays her off for two reasons. 1. He owes me alot of money 2. We had both agreed that the money from all houses was for our future and he wouldn't be keeping his part of the bargain. Rest assured, I am no soft touch and I will not be left out of pocket! If he thinks that I will be putting up most of the money for a bigger house, he's very much mistaken and we will end up going our separate ways!

A) Well, a lawyer here is necessary for sure. Go to your local CAB if you cannot afford one privately. As for an ex who claims money, I believe she can only do so for her kids, as she was never the owner of the property. Get professional advice on this though. And be DAMNED sure you don't get frigged by your partner when he leaves you to live with another woman.