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Is it legal?

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The requirement for a life policy that covers the value of the mortgage is normal but 28K/year is far too high for a 1.5M loan.

 

Bank staff receive commission on life policies so will often try to upsell higher than the minimum required and they may present that as a condition of the loan.

 

You can negotiate. I think the annual premium should be in the range of 3-4K/year.

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