If the above topic did not get you
already depressed, then allow me to elaborate further. As I said in a previous
blog – which means that you should have read all the previous blogs as well,
but I do not mind you skipping – lenders of such loans will require that you
take out insurances that can cover several eventualities, or rather which cover
most of the common occurrences that may preclude you from repaying your loan as
a good UK citizen should. To make it painfully clear, the insurances are
non-negotiable components of the loan agreement, but you will most likely be
allowed to try and find the most affordable provider of the insurance package
the lender obliges you to purchase.
As you may already guessed – or read
above – the package will most certainly include a life insurance, which would
make the bank your primary beneficiary in case that you die. It is also
possible that such an insurance package will also cover several debilitating
and crippling injuries that will bar you from being gainfully employed, but
also there might be an insurance that would cover the (temporary) loss of
employment.
Most of other insurances will be
pertaining to your home that you put up as collateral. It will include fire
hazard, maybe also flood hazard, electricity damages, anything that can lead to
the collateral losing its value should, or rather may be covered. Such packages
are standardised by now and all you need to say is that you are required to
take such an insurance package for mortgage purposes and the agent will know
which packages do apply. Feel free to shop around for the best offer.
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