Life insurance

Can anyone explain why life cover is so expesive in Spain compared to here . Is it possible to use a UK life policy for a morgage in Spain .

There is nothing intially for not  using the Uk INsurance policiy if you can prove it will  fully cover the uses that the Bank requires it for. Of course the Bank cannot impose a determined Life Insurance to you with no justified reasons.

Best,

Maria

Thank you for your help Maria. Much appreciated.

John

Have finally got this sorted have beeen in contact with a company which told me to ask the bank to put in writing that i must have thier life ins after some time i received a letter saying there is no legal requirement to have any life cover this new company have been able to do the same cover as the bank for 75% less!! which is about the same as life cover here in the uk if you would like the details of this company PM me

Regrds John

Hi

I'm having exactly this conversation with the bank on the first anniversary of my purchase. At the signing I was told that LI was mandatory but I could provide my own as long as it was available there and then, which clearly it couldn't be..so for the first year I took the bank-provided cover at EUR71 per month.

In the UK, I have found that Norwich Union will provide the same cover and assign the proceeds to the bank for £17 per month...so it's a no brainer for me. However the bank are now telling me that as a condition of my purchase I must take their cover. I have e-mailed my solicitor, who is unfortunately on holiday this week, for his view. However, given Maria's unequivocal statement earlier, my solicitor should confirm the same then I'll go right back to the Bank and get them to cancel the policy when the year is up at the end of April and go straight to NU, thus saving some EUR600 per year....

It is not a condition of a mortgage however many banks will try to sell this to you, it is not as easy to use UK cover as most lenders wont assign anymore albeit a solcitor could however this leads to more charges!

A better bet is an offshore policy from a subsidiary of companies well known in the UK such as Skandia Int or Froends Prov Int etc etc.

It is actually not legal practice for a lender to force you to take life assurance, indeed their product, but the majority of lenders now insist on this as a condition of the mortgage - I am sure both myself and Smiley have mentioned previously that lenders now have a take it or leave attitude; no life assurance, no mortgage!    I have also experienced lenders insisting that any independent policy will only be accepted from a Spanish domiciled company.