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Original poster

A policy that pays off your mortgage if you die, suggestions and advice?

35 replies

lilibet · 01/02/2006 12:54

We don't have one and realise that we need one, what do you all have and can you give us some advice on the type of policy and wehre we could get it from?

TIA!

OP posts:
FioFio · 01/02/2006 12:56

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elliott · 01/02/2006 12:56

if you have a repayment mortgage then you just need a simple decreasing term life policy that pays out less as the mortgage reduces - they aren't very expensive. Maybe look online to see if you can get some quotes - try Tesco perhaps?

FioFio · 01/02/2006 12:56

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LIZS · 01/02/2006 13:00

We have endowments that would do that but also you get cash at the end of the term , the idea being to get more in the end than you paid into the policy and at least enough to pay off the mortgage capital - ours currently have a projected shortfall though . Your mortgage lender might be a good place to start or an IFA.

mcmum · 01/02/2006 13:02

lilbet

hello i am a pa to an independent financial advisor. Dont go to Tesco as rhey dont offer advice and there policies are inferior. We always recommend our clients take critical illness cover combined with their life assurance this way if you are diagnosed with illness the policy still pays out whole amount to repay your mortgage even if you recover and are fit and well. this can be done over phone or you can ring me on 0191 4884168 if you need further free advice good luck

elliott · 01/02/2006 13:05

personally, I don't think you need an IFA for something as basic as this - they will probably just try and persuade you to take out something else for which they will get more commission....
If you know what you want, the only differentiation is who will give the cheapest quote. Money supplements in the Guardian and Observer used to give 'best buys' for term life assurance but I'm not sure they do anymore.

mcmum · 01/02/2006 13:07

if you find an honest ifa you dont get charged they are free !!!! you must however use a one that is regulated by FSA .

MissChief · 01/02/2006 13:08

NB there's been loads of press about critical life assurance too -often doesn't cover when you need it and v.v.expensive. Wdn't bother, just make sure you get really good life assurance - can find recs from www.guardianunlimited.co.uk

  • go to money guardian I think. Also moneynet - all of this is free & impartial unlike an advisor!
cece · 01/02/2006 13:08

look on www.moneysavingexpert.com

MissChief · 01/02/2006 13:09

but the free IFAs - will be on commission for selling certain products (ie never impartial)- they're not doing it for the goodwill, are they? it's their livelihood!

JanH · 01/02/2006 13:10

There is an online agency called Rebroke which we have used, and they are good, straight and unbiased IME.

website

elliott · 01/02/2006 13:12

mcmum as you know, 'free' IFAs make their money from the commission they get on the products they sell - so they have an interest in selling more products that pay more commission. Don't suppose there's a lot of commission on a basic decreasing term life policy

mcmum · 01/02/2006 13:16

Are any of the mums offering advice here fully qualified through the financial services authority ?? I find comment re get good life assurance amusing as all LIFE ASSURANCE is same in that it only pays out if you are dead !
What about being advised on such options as terminal illness benefits, policies that can be increased in cover if you move house, policies that will guarantee not to go up in price, policies that can be reinstated after a claim has been made. The negative comments re critical illness are very unfair who would believe what you read in tabloid press-the real reasons for policies not paying out is applicants not disclosing previous medical problems. We have in the last two months had several clients claim on policies and receive over £100,000 each !

mcmum · 01/02/2006 13:21

if they give wrong advice for own financial gain they would be struck off ! always check your IFA is registered with FSA, I know my employer always compares atleast thirty companies and provides his clients with cheapest options unless cover is inferior, for example do you know that only 1 company provides against rhuematoid artritis ? whilst another company specifically covers HIV for certain occupations this is why taking advice from a regulated IFA is best option. By way my employers is nationally the largest IFA'S !

MissChief · 01/02/2006 13:29

maybe you should post in the classifieds section mcmum! . doubtless yr company does have greater expertise than we have here - but one way or another it;s naive to think it's "free" though - either thro a fee or commission the IFA has got to make money on the advice given. Expertise is however available for free from websites as posted by me & others. The neg press on crit life assurance was in all the broadsheets btw..

mcmum · 01/02/2006 13:34

Or ring FSA They will help you out ! good luck

mcmum · 01/02/2006 13:34

Or ring FSA They will help you out ! good luck

mcmum · 01/02/2006 13:51

misschief

yes ifa's receive commission the amount depends on the amount of the premium. However if the cost of the cover is £20 through IFA it will be same by going direct to the insurance company and infact it may even be cheaper via an IFA, the benefit is the advisor is giving you genuinely professional advice to find the best product for you. Don't be under illusion that if you go direct to insurance company that they don't receive any commission. It is known as profit ! Think of it this way you can complete your own tax return for nothing or pay an accountant £100 and saving thousands in tax bills. or cut your own hair to save money or pay a professional hairdresser and get the job done properly!

MissChief · 01/02/2006 13:53

gosh, would never have thought of that

mcmum · 01/02/2006 13:55

isn't this fun

MissChief · 01/02/2006 13:57

more so than changing a dirty nappy! I'm currently on (now unpaid) mat leave, so not even getting paid for this, are you??

mcmum · 01/02/2006 13:58

I know i may have got bit indepth here, however take my job very seriously and am very passionate about what I do, especially since my best friend was diagnosed with breast cancer and has had double mastecomy this has made me more aware policies and unfortunately her life policy didnt pay out (not through us) but had she had critical illness it would have, she has two children and was main earner in house now unable to work,

mcmum · 01/02/2006 13:59

I know i may have got bit indepth here, however take my job very seriously and am very passionate about what I do, especially since my best friend was diagnosed with breast cancer and has had double mastecomy this has made me more aware policies and unfortunately her life policy didnt pay out (not through us) but had she had critical illness it would have, she has two children and was main earner in house now unable to work,

mcmum · 01/02/2006 14:04

misschief

funnily enough im on lunch break ! but I am working from home today. About to pick kids up nice chatting to you, good luck with nappies been there done that twice mine both at school now and actually miss them alot tho just bought puppy at weekend so puppy sitting !

MissChief · 01/02/2006 14:09

you too!
Wondering whether will miss mine when/if I go back (but that's another thread!)