[Gllug] NHS opt out

[John Winters]

> Can't say I have any direct experience in the area of mortgages,  but
> my guess is:-
>
> If you are relatively young and taking a mortgage for somewhat less than
> 100%
> of the house value,  the Building Society/Bank may not require any kind
> of life insurance as they can always grab the houe if you snuff it and get
> their
> money back.
>
> However, if you are older and taking on a mortgage for a substantial
> percentage
> of the house value the Bank may well feel that in the event of you
> snuffing it
> (more likely if yu are older) they will not be able to flog the house at
> auction
> or whatever and receover what is owed. In which case they will require
> some
> insurance cover so they are not left out of pocket.
>
>
> Just a guess !!!

My experience is the exact opposite.  When you are young and buying your
first house you tend to be a little in awe of your lender and willing to
do exactly what they tell you.  They have a strong incentive to sell you
life insurance because that significantly increases their profits on the
deal.  They are liable to give the impression that it's compulsory,
although I believe they are no longer allowed to make it a requirement.

When you are older and more experienced you are better able to tell them
to take a running jump.  You still get the calls from the bank trying to
sell you life insurance but you just keep saying no.

Of course you still need to decide for yourself whether or not you need
life insurance.

John


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