Mortgage & House insurance

I did! Sorry !!!!

I don't agree with the word "appreciably" above, if the partners have the same income then at most you should need 50% cover, and in practice less because at least some of the non-housing-related costs (e.g. food, transport) will go down. And if you were being hard-nosed you could wonder how long people typically go after a death before they remarry ...

True, but of course that doesn't have anything do do with mortgages per se.

How likely is it that both have the same income? If they don't, then the upper bound is more than 50%. And what if both die and there are kids?

Not to mention council tax.

What's that got to do with the price of mortgages? Not everyone is lucky enough to be able to remarry into money.

No, just with the ability to repay them.

What happens if they are both in a car accident? Unlikely, but an eventuality that they may want covered.

Level term insurance would provide an even bigger incentive.

Steve

Indeed, and my fee for calculating the optimum timing will only be 1%.

In message , Ronald Raygun writes

I'll do it for .9999999999999999999%

Maybe they don't, but my point is that you need to think in detail about what the real consequences would be of a death (or serious illness etc) and not just say "life insurance to pay off the mortgage".

A complicated scenario in many ways, and one which needs a lot of thought, money may well be the least of it. Somehow I doubt that you'd just want the children to live on their own in a mortgage-free house ...

Most people will at least live together if they get married! And I don't know what you mean about marrying "into money", even if a man marries a woman who subsequently doesn't work (or indeed vice versa) that will cancel out the extra childcare and housecare costs. Of course, people might not want to think in those terms - but then they usually don't want to think about death at all.

But they may want the children to benefit from the cash made from selling the house. University Fee's, general house keeping costs etc.

"Phil Deane" wrote

Why would that necessarily *equal* the value of the house? Couldn't it easily be less or more? In which case, as Stephen points out - you should consider that situation properly and ensure that the correct amount of insurance is available for that scenario ...