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Life insurance on a mortgage


sunny

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Hello,

A friend is looking to take a mortgage to buy a France house (not sure why, in these bad times!) - if the mortgage comes through, he been advised that he will need 'life insurance' coverage through the bank as an additional cost to the mortgage.  Is this required - and if so, can he use existing life insurance coverage to meet requirements? 

Thanks.

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It is required - at least for a certain amount borrowed.  Not sure if it is required for a very small mortgage - say under 50,000.  I'm sure someone else will know.

The bank will most likely give your friend an application and then tell him/her the price of the mortgage cover (based on the amount borrowed).  We were allowed to get quotes from other local insurance companies to compare what the bank offered.  In the end, for us, the quote from the insurance company the bank uses/owns turned out to be the best price.

Age and health conditions come into play when getting quotes and/or coverage approval.

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As Lori said it is required and it is likely that an existing English policy would not be accepted - especially if linked to other loans - but you can always ask.  It would be likely to complicate any deal and the costs are IMHO not very large.
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