Hi,

When shopping for the requsite life insurance should it cover the amount borrowed for the mortgage or the total amount repayable?

Thanks

The total amount repayable if you drop dead, I would think. I have just converted from endownment to repayment and have to get a bit of extra cover, just in case.

The insurance should cover the balance outstanding on the mortgage (including any arrangement fees etc. if they have been added to the mortgage). When you are talking about 'total repayable' are you looking at the total repaid including all the interest over the years?

The cheapest sort of insurance to go for would be a reducing term policy - the amount it pays out goes down every year to match the balance on the mortgage.

Hi,

When shopping for the requsite life insurance should it cover the amount borrowed for the mortgage or the total amount repayable?

Thanks

We are independant financial advisors, we can offer you a quote as we have access to all the uk companies.

Level cover would pay out the full sum you covered ( eg £100,000 if you died even in the final year of the policy, this is advisable if the mortgage is interest only.

Decreasing cover reduces at the same rate as your mortgage and is cheaper but only advisable on a repayment basis.

You also need to think about critical illness cover and childrens cover etc, also some companies offer better coverage than others.

Wise Move Mortgages & Financial Planning Ltd

01142 491066