iandublin2
Registered User
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- 49
Hi,
Myself and my wife are 30 years old
Owe 285k on a 2006 mortgage for our home and 30 yrs left on the mortgage.
Have a 35 year reducing amount Mortgage Protection policy in place at €30 a month on the mortgage since 2006.
Is it better to switch to a normal Life Assurance policy for say 300k?
The way I see it:
From this example it seems that it would be far more beneficial to take out term Life Assurance rather than a reducing term cover Mortgage insurance.
Myself and my wife are 30 years old
Owe 285k on a 2006 mortgage for our home and 30 yrs left on the mortgage.
Have a 35 year reducing amount Mortgage Protection policy in place at €30 a month on the mortgage since 2006.
Is it better to switch to a normal Life Assurance policy for say 300k?
The way I see it:
- Lets say that in 29 years, we had 20k remaining on the mortgage.
- One of us dies.
- With Mortgage Protection the remainder of the mortgage would be paid off (20k) and surviving spouse gets nothing.
- With a normal Life Assurance policy, the remainder of the mortgage would be paid off (20K) and spouse would then get 280k.
- If we died in the next couple of years, the surviving spouse would still get a few quid from the normal Life Assurance policy
From this example it seems that it would be far more beneficial to take out term Life Assurance rather than a reducing term cover Mortgage insurance.