Some people are saying I have to and some say I dont?
2007-11-26 02:18:22 · 11 answers · asked by Senorita 3 in Business & Finance ➔ Insurance
No - but you would be silly not to have some sort of cover - but don't just take the one the mortgage company or your financial adviser offer (they are on commission) - shop around on the internet for the best deal.
2007-11-26 02:21:44 · answer #1 · answered by Anonymous · 0⤊ 0⤋
My mortgage terms required life assurance cover (our mortgage was an endowment type paid off by associated insurance policies), but there was no mention of critical illness cover. I'm not sure why the mortgagers might insist on that, as they have the property as security anyway.
2007-11-26 02:23:17 · answer #2 · answered by kinning_park 5 · 1⤊ 0⤋
It's not a legal requirement to have them. It's for your own peace of mind. If you were to die during your mortgage term, the debt would pass to your estate. If you have life cover, the mortgage can be paid off. If you were diagnosed with a critical illness such as cancer, you can claim, get the cash and choose to pay your mortgage off or go on a world cruise! You don't necessarily have to die to be paid on critical illness. You have to consider if you have dependents or not.
2007-11-26 02:22:30 · answer #3 · answered by ♥ Minki ♥ 5 · 0⤊ 0⤋
No you do not have to have either. You can get mortgage protection insurance which is well Worth while as if you are ill the monthly payments are met while off work. Also on your death the mortgage is fully paid up and your spouse has nothing to pay.
2007-11-26 02:33:50 · answer #4 · answered by ANF 7 · 0⤊ 0⤋
If you down payment is 15% or more you can wave your mortgage insurance. This mortgage insurance is seperated from any life insuarnce or disability insurance. You do not need life or disability insurance to get a mortgage, although the mortgage copmpany might require you to buy a mortgage insurance if you down payment is less than 15%. (they used to even allow no insurance for down payment up to 10%, but might have changed because of the new lending standards).
2007-11-26 02:25:03 · answer #5 · answered by crapaudblanc 4 · 0⤊ 0⤋
Many mortgage lenders will insist on life assurance but not all, but most won;t insist on illness cover.
It may sound unecessary, but if you become to ill to work you won't be able to pay your mortgage and you will have your house repossed. Life assurnce will cover your death so you partner/children etc won’t have the house repossesed if they cannot continue to pay the mortgage.
2007-11-26 02:23:20 · answer #6 · answered by Marky 6 · 1⤊ 0⤋
It depends on the terms and conditions of your mortgage.
Look at your mortgage or ask the mortgaeg company.
There's no obligagtion in law, but by taking out the mortgage you effectively made the terms and conditions legally binding.
2007-11-28 04:29:01 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I would not cancel the policy. The rules in the United States are different. I would contact your Dept of Insurance or the part of your government that handles insurance for help. Good Luck.
2016-05-26 00:13:53 · answer #8 · answered by ? 3 · 0⤊ 0⤋
You dont not have to carry it. Although for just a few dollars a month it may be worth it for you to have. I would consider your current health, age, and overall financial stability and consult with your insurance agent.
2007-11-26 02:26:03 · answer #9 · answered by OC 007 2 · 0⤊ 0⤋
the way you use language suggests to me that you are not in America.
thus, you have to ignore the responses from the Yanks as they don't know what they're talking about. [Everyone who doesn't say is probably a Yank.]
2007-11-26 02:23:13 · answer #10 · answered by Spock (rhp) 7 · 2⤊ 0⤋