Life insurance on mortgage

zack01

Hi

Quick question, couple applying for mortgage, one has bad credit rating, one has excellent rating plus has the higher salary. The bank reccomend that the spouse with the higher earnings apply for a single person mortgage as they can guarantee it instead of a joint mortgage.

Question is, what can you do with a life policy on the mortgage? Even though the mortgage is in one name can the couple take out a joint insurance policy on the mortgage?

Sorry for rambling, would appreciate any comments or advice.

Millem

zack01 wrote: »

Hi

Quick question, couple applying for mortgage, one has bad credit rating, one has excellent rating plus has the higher salary. The bank reccomend that the spouse with the higher earnings apply for a single person mortgage as they can guarantee it instead of a joint mortgage.

Question is, what can you do with a life policy on the mortgage? Even though the mortgage is in one name can the couple take out a joint insurance policy on the mortgage?

Sorry for rambling, would appreciate any comments or advice.

I am not an expert and I don't have a mortgage but do have a joint life insurance policy as we are expecting our first child. It is actually a "dual" policy so we are insured each for same amount and it could potentially pay out twice. So I presume the answer is yes. A mortgage protection policy though is probably only for the mortgage holder?? They are cheaper as the amount diminishes each year as the mortgage goes down.

Henry Ford III

Yes you can, and should apply for a joint life policy in those circumstances.

Ask a professional for advice on what sort though. There are loads.

ted1

AIB wouldn't let me apply for a single mortgage even though I'm the only one working. Both names had to go on the mortgage as the other spouse has legal rights to the property through marriage.

With regards life assurance don't take the banks and shop around. For a mortgage of 200 we are paying about 32 euro for dual life cover.

Millem

ted1 wrote: »

AIB wouldn't let me apply for a single mortgage even though I'm the only one working. Both names had to go on the mortgage as the other spouse has legal rights to the property through marriage.

With regards life assurance don't take the banks and shop around. For a mortgage of 200 we are paying about 32 euro for dual life cover.

I would agree shop around we pay €35 for dual for €300,000 over 30 or 35 years (can't remember). We got a thing added on I think it is called a conversion? It's if you develop an illness during policy they can't "load" you new policy. We went with hello.ie brokers but policy is with Zurich.

zack01

Thanks for the replies guys, much appreciated.

The_Morrigan

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Please do not post on behalf of your company again without an official verified account.

Thank you.

jon1981

Millem wrote: »

I would agree shop around we pay €35 for dual for €300,000 over 30 or 35 years (can't remember). We got a thing added on I think it is called a conversion? It's if you develop an illness during policy they can't "load" you new policy. We went with hello.ie brokers but policy is with Zurich.

Is this €35 a month I presume?

Millem

jon1981 wrote: »

Is this €35 a month I presume?

Yes €35 per month!

jon1981

phew, thought I was ripped off there