Worldlife
08-04-2006, 21:07 PM
Several years ago I became involved in selling life assurance. One of my clients asked if I could help his Dad who had just had an quotation from a bank for a mortgage to exercise his right to buy a Council House.
Of course I was able to provide a much better quotation!!!
We had a chat about his outgoings for renting in comparison with the outgoings for the new mortgage. The applicant's age meant, even with the substantial discount he was being offered, that the mortgage outgoings would be much much more than the rent.
Like many parents my clients Dad wanted to take on this burden so that he had something to pass on to his family.
Dad then signed up and completed the medical questionairre in which he declared he had had a triple heart bypass information. I explained I would need to get a quote from the underwriters and there would probably be a hike in the insurance part of the premium. Dad still wanted to go ahead.
If I recall correctly the hike in premium amounted to about £600 per year.
Our team agreed with my decision that I would not push the sale of this expensive policy. I revisited Dad with the quote and went through all the figures again and Dad opted to go ahead with his right to buy.
I often think of Dad and wonder if his family will get the property he worked so hard for. Will he will lose the lottery of life and Social Services step in and demand the property is sold to cover residential or nursing home fees?
It's a disgrace that the "right to buy" was pushed on these Council house tenants and we now allow the rug be pulled from under their feet.
Of course I was able to provide a much better quotation!!!
We had a chat about his outgoings for renting in comparison with the outgoings for the new mortgage. The applicant's age meant, even with the substantial discount he was being offered, that the mortgage outgoings would be much much more than the rent.
Like many parents my clients Dad wanted to take on this burden so that he had something to pass on to his family.
Dad then signed up and completed the medical questionairre in which he declared he had had a triple heart bypass information. I explained I would need to get a quote from the underwriters and there would probably be a hike in the insurance part of the premium. Dad still wanted to go ahead.
If I recall correctly the hike in premium amounted to about £600 per year.
Our team agreed with my decision that I would not push the sale of this expensive policy. I revisited Dad with the quote and went through all the figures again and Dad opted to go ahead with his right to buy.
I often think of Dad and wonder if his family will get the property he worked so hard for. Will he will lose the lottery of life and Social Services step in and demand the property is sold to cover residential or nursing home fees?
It's a disgrace that the "right to buy" was pushed on these Council house tenants and we now allow the rug be pulled from under their feet.