Life Insurance

[dsvd]

Is it a better idea to have your term life insurance with another company other than your bank where your mortgage is with?
(Is this more attractive to the bank when applying for a mortgage?)
So in the event of your death it will not try and renig and chase the life insurance company?)


Also what would be the normal amount of cover to go for e.g 50k or more?

[bednobs]

are you talking about a life insurance policy to cover the mortgage? if so then you need to go for as much cover as the mortgage is - ie if the mrtgage is 120 000 then thats what you need life cover for. most lenders make life insurance a stipulation of taking out the mortgage, and i have always had mine with the lender as it just makes it easier to prove i have it. Mind you if i changed lender i wouldnt change the LI

[sandmaster]

As Bednobs says you will need to take out cover to the extent of your mortgage. Policies you may already hold may be taken into account though. You can shop around for the best premiums but if there is little difference you may as well buy through the mortgage provider. Remember - there is no return at the end of the policy period - only if you die beforehand.

[Naomicorlett]

you can also get diminishing return cover so the premiums go down as the amount needed to cover the outstanding mortgage falls.

[buildersmate]

It is always worth shopping around for this type of cover as rates do vary a bit between companies. Do not necessarily accept that the first price you are given is the 'final' price available - it works a bit like shopping around for car insurance - trade one company off against another.