Mortgage Protection Insurance

J

Jane2

Guest
Which company offers the best deal? I have heard that some companies offer to refund the first years' premiums for policies taken out on-line.
 
Thanks for that. Monitum are more competitive than LA Brokers, in that they give a better refund in the first year. Otherwise, their quotation is exactly the same.
Premium:247.91 on 171,000 mortgage over 25 years.
First Year: LABrokers: 118.05 (Discount 129.86)
Monitum: 49.79(Discount 210.98 if premium paid monthly or 198.12 if premium paid annually).

With LA Brokers you pay the discounted amount, whereas with Monitum you pay the full amount and they refund the discount later.

Either one is a lot cheaper than the 303.12 which was organised by my estate agent through Eagle Star. After the first year, I save €55.21 per annum.

Both LA Brokers and Monitum were very efficient and helpful, but I'm going to go with Monitum, since it's the cheapest.
 
Is there any catch to having a substantial discount in year 1? Will this prevent me from moving my policy to someone else at a later stage? (I am considering paying a lump sum off my mortgage and would therefore want to reduce my mortgage protection accordingly).
 
Hi,
I have a mortgage with AIB & I am sure they are charging well & above what monitum & la could charge for mortgage protection insurance. Is it too late for someone like me to switch to a lower priced insurer & is it hassle free ie will I get grief ex AiB please?
 
Hi Rco2000

There is no difficutly in changing other than the tedious form filling. When is your renewal date? Give yourself plenty of time before the switch to make sure that you will have the cover in place. Contact LAbrokers or monitum as advised above and they will tell you what you need to do.

Marion

PS: Also, don't forget to shop around for your house insurance cover
 
If you reduce the amount of your mortgage via lump sum or overpayments, should you then automatically reduce your mortgage protection insurance?
 
Not sure what you mean by automatically but if it would save you money and you don't expect to be topping the mortgage back up any time soon or at all then it might make sense to put in place alternative mortgage protection life assurance cover and then cancel the original policy. I reckon the savings might be marginal in the general case though. If you are replacing your existing life assurance cover then keep your mortgage lender in the loop.
 
The savings are more than marginal depending on your provider.
For simple life assurance go for the cheapest available. There are NO bells and whistles. You can change at any time and bank the money for the same cover or you can continue to pay for some Fat Cat's lunch at L'Ecrivain[FONT=Arial, Helvetica, sans-serif].



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Thanks Clubman & cn624 for your helpful advice. Clubman, that link is great explains a lot. thanks
 
A broker today told me that the catch with using Labrokers and motilium is that they charge brokerage fees instead of getting full commision from the banks and that there are penaltys to pay if you switch polocys before 3 years. Can anybody shed some light on the pros and cons of using a broker that refund you some of the commision they get
 
Labrokers had an offer which was in yesterdays Irish Independent that they are giving 90% off premium for first year for three days only. To avail of this offer you go to labrokers.ie website and select discount code at bottom right of screen. Input code labrokers.ie and you will then automatically get the discount applied to the premium when you input your details.
 
i would advise you to look at the detail behind the mortgage protection. These products can be very expensive
 
What do you mean by "mortgage protection"? Mortgage protection life assurance (mandatory for owner occupiers with some exceptions) or mortgage repayment protection insurance?

I totally agree that one should always check the detailed terms & conditions of the policy document of any financial product.
 
When I took out Mortgage Protection with Monitum, I asked that very point "whats to stop customers changing their policy every year, to take advantage of the lower cost at the start of the policy" - NOTHING, I was told!!!
 
We have just used LAbrokers for our mortgage protection. The service was reliable and most professional. Nailer00, there are none of the brokerage fees or three years small print. We are pleased to recommend them to our friends.

Ask about money is providing a great service to consumers and thank you all for your valuable help.
 
Does anyone know whether it's legal for a mortgage provider to insist that you take their mortgage protection deal?

Also is a mortgage protection rate of 0.5% of the overall mortgage fairly standard?
 
Does anyone know whether it's legal for a mortgage provider to insist that you take their mortgage protection deal?
Click to expand...

A lender cannot insist you take a mortgage protection policy with them.

with regards to your second question, im not quite sure what you mean,
 
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