NLIC.org

Jonathan Said:

Do I have to buy buildings and contents insurance from my mortgage provider?

We Answered:

Many years ago, some mortgage lenders used to insist that you bought their (often expensive) home insurance. Thankfully this was stamped out and now you are not tied to them for buildings insurance.

You do have to demonstrate that you have cover but any insurer is happy to issue a certificate to your mortgage lender, it is a fairly common request.

Historically there was a £35 charge made by the mortgage lender to process this 'administration' but I am pretty sure that is also no longer practiced by anyone.

Shop Around!!

Elaine Said:

My mortgage provider is telling me he legally has to advise me on insurance is this true?

We Answered:

He has to document that he has discussed them with you but you do not have to take them with him.

Johnnie Said:

Unsecured Credit Card Debt Insurance?

We Answered:

There is no such insurance. There are some "credit" sites that contend you don't have to pay defaulted debt because the insurance paid the bank. Put that site on your list of BAD INFO.

If you default on credit card debt, the bank takes the loss. They may sell the debt to a collection agency at a very deep discount.

PMI for mortgages is a different thing altogether. No, you can't shop around for better rates. You are stuck with what the mortgage company uses. You also won't be able to get out of that PMI until you have paid down the original mortgage to 80%.

You can't get a new appraisal that shows the value has greatly increased. If your house has actually increased in value, you might consider refinancing to eliminate the PMI requirement.

Darlene Said:

is mortgage insurance worth the cost.?

We Answered:

PMI- Private Mortgage Insurance is the biggest waste of money. It is usually required if there is no equity in the home or you do not close with a 20% down payment (or the equity is not 20%) It basically insures that your mortgage will be paid. It's such a crock.

Joyce Said:

Is cervical cancer considered a "deadly" cancer to critical illness insurance providers?

We Answered:

We have that on our mortgage and this certainly sounds like it to me. If I qualified, she should. I had a bi-lateral mastectomy. Read the policy or ask someone knowledgeable on these things. I asked my sister who is an insurance agent. If cervical cancer doesn't qualify, then I can't imagine what they would consider "critical illness" Good luck and I pray your wife does well.