New mortgage. Need some life insurance but im very confused. Anyone help??

[tiredemma]

I need to purchase some life insurance, im struggling to understand as some companies off 'mortgage life insurance' 'life insurance' 'life insurance with critical illness'

I dont even know where to start!!!!

Emma,

You can have many varieties for many different reasons. You want to cover your mortgage, but if you have children you may want extra cover too.

Basics are: Life only - covers you if one of you dies the mortgage gets paid off if you have insured yourself for enough

Life & CI: As above but also pays out if you and / or your partner gets diagnosed with a Critical Illness on your insurer's list.

You can get Decreasing term (mortgage life assurance) which is alright if you just want to cover your mortgage and it is a repayment mortgage as the sum assured reduces over time in line with your mortgage. Not much use if it is an interest only mortgage.

Level term: Best if you have an interest only mortgage as the sum assured does not reduce.

These policies can run over the period set by your mortgage company or longer if you so wish.

A good mortgage advisor should be able to give you good guidance on what is available for you now.

Well dont purchse it from your mortgage provider for a start. Look on moneysving expert for good advice. Then compsre rates for what you want at moneysupermarket or similar comparison sites.

Critical illness cover is v expensive and almost always a waste of money. I would never buy it.

Sorry to hijack but does anyone know if life insurance policies are tied to the particular mortgage you took it out with?

We took a policy out when we bought our first property and have now sold up and bought our second property which has a lower mortgage than the first property and are still paying for the policy we originally took out (was on a decreasing term but will still be worth more than current mortgage).

thanks for replies.

I will have another look

They can run separately oneofthosedays

Thanks Gonzo, I'll check with the insurer to make sure.