Saturday, May 13, 2006

Only two thirds or mortgage payers have life insurance!

Firstrung: Home owners ignore life cover for their mortgage - Friends Provident

Interest only mortgages without the life of the mortgagee being insured? This could be due to the affordability issue being stretched to breaking point. Buy to let mortgages providers rarely ask for proof of life cover....

A recent survey from Friends Provident has revealed that just most home owners insure the contents of their property and ignore the mortgage they borrowed to buy it, putting their families' future at risk in the event of their death

Only two-thirds (69 per cent) of home owners have life cover to meet mortgage repayments, compared to the nine out of ten (92 per cent) who have contents insurance, the survey found.

Posted by Converted Lurker @ 07:03 PM (611 views)
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1. Redwing said...

I would read this the other way round. 31 per cent of people are smart enough not to buy life cover for their mortgage debt. What's wrong with the 69 per cent? Let's face it, if you peg out, there's one less member in your family so Downsize.

And if you are between the age of 25 and 62 the chances of you dying are actually quite small and certainly not worth bothering insuring. But if you have a life-threatening genetic disorder of history of disease in your family your chances of getting cover are probably nil or very expensive.

And finally, spend the money you would have spent on the premiums by saving or cutting your mortgage term.

Some say rent is "dead money". But life cover is really money down the drain. You pay out, you live and you lose money.

Rant over

Saturday, May 13, 2006 11:09PM Report Comment

2. Linda said...

People don't trust insurance firms to cough up when the occasion arises so they feel it's money down the drain

Sunday, May 14, 2006 01:57AM Report Comment

3. Sirgoogle said...

RW. Life Assurance is primarily a protection against negative equity. Those of us who believe in HPC should have some. Also - if you ask at the time many companies will give you double the mortgage cover for a very small additional premium, so that should the worst occur and you pop your clogs your family can have that additional holiday etc to get over (or celebrate) your departure :-)).

Sunday, May 14, 2006 06:58AM Report Comment

4. sirgoogle said...

In addition to ensuring that your family don't have a problem with the mortgage when you pass on or be put into a forced sale, it is worth remembering that life assurance is a key component in also not lumbering your family with negative equity in the event that you pass away while a HPC is taking place (now that would be a shame).

It is worth asking an insurance company if they could double the cover required (a very small additional premium as the risk is so low) so that the family can have that holiday to get over (or celebrate!) your demise.

Sunday, May 14, 2006 06:55PM Report Comment

5. uncle tom said...

Hey Mr Webmaster, this story is next in line to fall off the end of the list, but it's only from yesterday..

Can you ease back a little!


Monday, May 15, 2006 12:28AM Report Comment

6. Pintail said...

uncle tom can you not sleep aswell, when will it all crash

Monday, May 15, 2006 12:44AM Report Comment

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