your life insurance and mortgage advice psychic…

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Being an independent mortgage broker doesn’t come with a crystal ball but when it comes to life insurance and mortgage advice I am somewhat of a psychic and this article is to do with Life Insurance (or any insurance for that matter).

Ok, so not literally a psychic but part of my job is to discuss Insurance with our clients with or without their mortgage advice and unlike some companies we are not pushy on the insurance front. We have a conversation about it and the choice is ultimately the customers but I would caution that it is always better to have something and not need it, than need it and not have as when it comes to mortgage advice and life insurance losing your loved ones is bad enough and losing your home on top of that (if there isnt sufficient cover) is a situation nobody wants to have their loved ones in.

However, I regularly get 1 of 3 replies:

  1. I do not need it.
  2. It will not pay out.
  3. It is too expensive.

Historically I have taken it at face value, however I more recently started to think about this….

“I do not need it”

That is fantastic news. If you know you are not going to pass away in the next 20-30 years, great!

“It will not pay out”

Having worked for a Life office in the past, I know this is not the case. However I thought it might help to see some figures. According to the ABI, over 97% of claims were paid out for Life insurance, income protection and critical illness in 2015.

Overall, 97.2% of protection claims are paid. When claims are declined this is usually due to either the claim being for a condition not covered by the policy, or the customer not disclosing important information when taking out the policy.

97% of claims ARE paid. The reasons for non payout are either the client not telling the truth or the definition not being met.

“It is too expensive”

Fair enough. It could be. But it is not always a case of all or nothing. If you have a £100k Mortgage and a £60k policy, that is a lot better than having a £100k Mortgage and no policy. £60k can be used to pay for a funeral, pay the bills for the next 5 years or to just pay a large chunk off the Mortgage and reduce the outgoings.

My job is not to be a cheesy insurance salesman but to offer the best life insurance and mortgage advice I can that is appropriate to your circumstances and need.

I want to get you your new home, I do have a responsibility to you and to myself to discuss the full aspects of life insurance and mortgage advice so if you want it, great. If you do not want it, that is fine also. But do not dismiss it outright based on the odd story you read in the press. I would always rather discuss it upfront and you decline it, than in 10 years time you ask me why we never discussed it at all.

What should I do next?  

Give Mortgage Success, the Manchester Mortgage Brokers a call, as we are always happy to have a quick chat with no obligation to proceed and being a whole of market independent broker we can source the right mortgage and insurance products for your needs and circumstances.