Evening all!
My partner and myself are about to buy a house and I've been made aware I need life insurance for this. Am I going to have to pay loads for this?
Just wondered if anyone has any advise or tips on which companies to look at and what the process is?
Thank you!
I'm not a financial advisor, so anything I say should not be construed as advice, but I do have good knowledge of the Life Assurance industry and the Mortgage lending regulations.
Firstly, I just want to say that for some years now it is illegal to make any form of life assurance a legal requirement for a mortgage. It certainly makes sense to have it if you are buying the house with someone else, or if you have any financial dependent who would be worse off if something happened to you.
If you are having a joint mortgage with a husband or partner, then should either of you die, the other in liable for the full loan, not just "their share", so it is sensible to have life cover in those circumstances. Other insurances "we" are usually asked to also consider are Critical Illness Cover and Income Protection. They pretty much cover what their titles suggest. Both of those latter covers are more likely to be materially impacted by your diabetic status, and in all cases, including life cover, how much it is likely to cost is going to be based upon your age, smoker status, your medical history, health now and a calculation to assess the risk for the coming years. Unfortunately, over a period of 25 or even 30 years, as some mortgages can run on a bit, the risk of infirmity for a diabetic is increased against the comparative risk of a non-diabetic person with all other factors the same.
Assuming you decide to have cover, in order to get the best deal, it is important you seek advice from an Independent Financial Advisor, so that many providers and products can be considered, as premiums vary from company to company, never mind the products and individual circumstances.
I'm sure that's not the sort of answer you might have wanted, but irritatingly it's how it goes!
Good luck with it all, and I hope you enjoy your new house when you get moved in.
