Life Insurance

Worried Milly

Registered User
Feb 19, 2009
26
0
This might be a really stupid question - but my husband is only 61 with AD. I have to remortgage the house and we currently have life insurance to cover the house if anything happens. Can I get life insurance again with my husband now diagnosed. ?? Any help pleased.
 

Grannie G

Volunteer Moderator
Apr 3, 2006
81,452
0
Kent
I don`t know the answer to your question Milly and I have moved yout Post to the section for younger people with dementia so more people will see it.
If you don`t get any answers perhaps you could phone the Helpline.
 

Sandy

Registered User
Mar 23, 2005
6,847
0
Hi Worried Milly,

I think it would be worthwhile to consider what the insurance is meant to cover.

My understanding (as it was when we took out our mortgage 20 years ago) was that the insurance was for your own protection, not the bank's. So that if you were a couple in your 20's, both working, planning to have children/with children - you would not have to worry about making the mortgage payments if your spouse died.

It would be worth approaching your current insurer, and maybe getting some other quotes, to see how much it would cost to cover your life, your husband's life and and your lives jointly. His diagnosis may make very little or no change to the costs - I suppose it depends on the term of the policy.

Given your age, and your children's age, it would probably be essential to cover your life, but including your husband on the policy may not be necessary.

I don't want to be too coldly-calculating, but really you would need to calculate what the financial impact of his death would be (loss of his pension and benefits vs. any widow's pension, etc.) to see how that compares to the cost of having him on the insurance policy.

You could always ask an independent financial advisor to help you review the options.

Take care,
 

Helen33

Registered User
Jul 20, 2008
14,697
0
Dear Milly,

I really am not sure but I would imagine that remortgaging the house won't affect your life insurance. It is life insurance, not house-insurance and I would imagine your life insurance will continue as usual. Please try not to worry because I think it might be easier than you think.

Love
 

Sandy

Registered User
Mar 23, 2005
6,847
0
Hi Helen and Milly,

I think the issue is the period that the insurance is meant to cover. For example, if someone took out a policy to cover a mortgage that was supposed to be paid off in 2012, say when they would be 52 years old, but then re-mortgaged for a pay-off date in 2022 when they would be 62.

They might want to cover that amount by an updated insurance policy and the costs of that policy would be determined by the amount of money to be paid out and the statistical calculations regarding the likelihood of death from ages 52 to 62. The costs might be fractionally higher due to age alone, plus any other health issues that the insurance company would want to take account of.

When my husband was diagnosed with Type 1 diabetes two years into our mortgage, we had to notify the insurance firm providing our mortgage insurance. As he was only 30 years old, it made no difference to the premium. I suspect it might make some difference now if we were to remortgage in our late 40's.

Take care,
 

susiesue

Registered User
Mar 15, 2007
2,607
0
Herts
Hi Milly

In his previous life David was an Independent Financial Adviser and I used to work with him.

In my opinion I would definitely keep the life policy in force that you already have - do not cancel it as there might be a problem if you then try to re-insure your husband now that he has AD - presumably he didn't have it when you took out the current policy.

You shouldn't need to change your policy just because you are re-mortgaging the house, although some unscrupulous Adviser might try to tell you differently. Stick to your guns and I would definitely keep the current policy - tell the Adviser you already have mortgage cover.

Even if you are increasing the mortgage and need to increase the life cover, then maybe just do a small additional top up policy which might or might not cover your husband now - but keep the old one in force for the bulk of the cover.

Hope this helps.

Take care.
 

Staff online

Forum statistics

Threads
138,150
Messages
1,993,473
Members
89,812
Latest member
Peej