Tips to cut the cost of Mortgage Life Assurance

It may be possible that you are paying excessively for your mortgage life assurance due to the sale pitch of your mortgage lender. However, by taking corrective steps you can cut the cost up to 30% or possibly £5,000 cheaper over the life of the policy. Whether you are already a policy holder, or need one for the first time the following steps will help you to save substantially on your insurance cost.

Mortgage life assurance is for those who may die during the policy period. It will then ensure that your dependents are not held liable for repaying the loan. The Insurance Company will take care of the balance amount of the mortgage loan. The mortgage life assurance actually means mortgage decreasing term life assurance. It is so called because the mortgage loan is decreasing as the years go by and therefore the amount to be repaid by the assurance company decreases over the years.


UK’s cheapest mortgage assurance policies

Since rates of life assurance policies subjected to daily changes you can’t find single cheapest provider at a given day. However, there are few niche execution only brokers who can help you to find the lowest priced policy. Unlike other brokers who charge commission from policy providers, the niche brokers don’t take any commission and instead you just pay a small fee. Hence you get the same policies as offered by other brokers, but at much cheaper rates.

However, the niche brokers just find you the cheapest price without giving any advice and all quotes are based on a healthy person. Hence, your price may go up if you have any health issues. Always check the full terms of the policy to check it suitability to your needs before you buy.

Among a number of such niche brokers, there are three which are always competing to be the cheapest. Their details are given below and you may contact them all for the best results.

Cavendish Online

Cavendish Online has been consistently offering competent prices during the past four years. It pioneered giving up all its commission in return for a one-off fee of £35 for an online application or £45 over the phone and can make it over 50% cheaper than most full-commission brokers. It offers two quotes, the ‘fee’ and ‘fee-free’ option; always choose to pay the fee, the monthly savings eat up the cost of the fee in just a few months. The commission option is only worth considering if your monthly premiums are under £7 a month.


Money World

This is a team of independent financial advisers that provides life insurance for a flat fee of £25 and no commission, either online or on the phone. It’s been around a while but recently moved to the ‘one-off fee’ practice and lowered its prices, and is often the cheapest of the top three.

Life Insurance Online

Life Insurance Online also charges a £35 fee and no commission. They are trying to match Cavendish’s prices and are doing it quite regularly. However, you may want to check its service and reliability before buying.

You may also want to check the services of the following policy providers:
Asda, Direct Life, Life Assure Online, Life Direct, Life Saver, Lifesearch, More Than, AA, Legal and General, Marks and Spencer, Post Office, Egg, MoneyBackMortgages, Sainsburys, Tesco, The Idol, TQ Online.