mortgage life insurance while abroad

[bluestack]

insurance AND mortgages, two interesting topics in one thread, surely not !!

I'm planning on going to the US to train, and to offset being out of the UK housing market have bought a rental property.

All fine and dandy, until I started getting quotes for life insurance while away.
Have been getting quotes of base premium +£80 p/m because of the flying, and that's not including critical illness cover.

And these are from the companies that will insure me abroad.

Anyone else been down this route, US bound, with a mortgage in the UK and had any luck with decent rates of insurance.

I don't have any any dependants - so technically could do without it, but mortgage company wants it and critical illness is important.

Cheers.

[NickLappos]

Heaven knows, if you die and have no mortgage insurance, you will be in trouble with your mortgage company, and they might really hurt you! ;)

[212man]

Depending on how long you are away for, and hence your UK residency status, will also play a big part; very difficult if not resident for tax purposes.

I looked at adding life insurance cover a couple of years ago, generally things went smoothly till we got to the summary: "so, let's get this straight, you are a helicopter pilot, you work and live in Nigeria and you are no longer resident!"

Nothing off the shelf available, some kind Lloyds outfit offered term assurance for 165 GBP per month for 100,000 GBP cover. Thanks but no thanks!

[bluestack]

real show of benevolence from the insurance community there 212man...:ok:

That's the rub, if it wasn't stipulated on my mortgage then I'd not bother, and I'm loathe to pay a professional's rate for training...although from what you've said - I'm doing ok at £80.

I think any benefits to be gained from residency runs out after 6 months away - although I stand to be corrected.

[Barotrauma]

Bluestack - cant help you with your life insurance but you will get tax relief from the rental income for the first 12 months ( at least I did ) The letting agency automatically collected tax each month thereafter.

[i4iq]

I've been offered insurance by Hillsboro Aviation in the US who will also be providing my training in a few months. Might be worth talking to them.

www.hillsboroaviation.com (http://www.hillsboroaviation.com)

[ThomasTheTankEngine]

Hi Bluetack

I was in a similar situation, bought a house but remained in the UK; one life insurance quote was 3.5 times higher than the normal quote just because I’m a heli pilot. I have PMd you the detail of the guy who sorted my insurance in the end, hope he can help.

[bluestack]

got that PM Thomthetank, cheers, that's useful.

Hillsboro's on the shortlist so that's good to know, they're due a bell for chase up.

Barotrauma, I didn't think I was liable for tax as I'm a.) out of the country and b.) it's my primary home, not second...not to mention that the rent doesn't cover the mortgage - so technically not in profit....

I'll need to chase that up when organising the rental side of things in a few months

thanks for the advice folks - appreciate it.

[rattle]

You only pay tax on any profit, and it sounds as though you won't be making one!

I would change your mortgage to one that doesn't require life insurance. If you have no dependents, then why bother with the expense. Plenty of good mortgage offers around, so use the money you save to do some more flying.