mortgage protection / life assurance policy

cathkc

Hello
A question please about mortgage protection policies.
My husband owns a property, purchased before we were married, and he has a single mortgage protection policy on this property which is assigned to a lending institution. It's costs him 22 p/m
If we wanted to have me covered with mortgage protection on this property but we cannot add me to his current policy given it's a single decreasing mortgage protection policy should we:
1. Have Me taking out a single mortgage protection policy for this property @ 13 p/m,
2. Have My husband switch providers and take out a new joint mortgage protection policy with me at 26 p/m
3. Something else?
The cheaper option is to switch to a joint policy, but it strikes me cheaper may not always be best in cases like this.
Any thoughts or suggestions much appreciated
C

okiss

At the moment your husband has a single decreasing mortgage protection policy. I would look look into the cost of this as he may get this cheaper.
Also is the mortgage just in his name now? Are you both paying this mortgage or have do you have this home rented out?

The cover he has at present will just pay off the mortgage if he died. Also when the mortgage is finished the cover ends also.
It may be better for you to have some Convertible Term Life insurance.
This provides the same basic insurance cover as level term assurance
but with an option to convert the policy into another type at a later stage without having to undergo a medical examination or additional proof of good health at that time.
Also it means that if anything was to happen to you your husband/estate would have x amount of money in your will to leave as you wish. At that stage he could get a final figure to pay off the mortgage and still have money left after doing this.