Hi All,
I currently have mortgage protection (terms based) life assurance for myself and partner, which we were required to take out when we took out a mortgage 5 years ago.
Now that things are a lot tighter, I was looking for ways to reduce this cost, while maintaining the required cover for the mortgage.
Remaining term: 30 years
Mortagage: €306,000
I think the 'terms' option is more expensive than the basic. I've been shopping around and there seems to be good deals on mortgage protection now.
Question 1:
How easy is it to cancel or get rid of my current policy and switch to a new provider? Are there any penalties or things to watch out for?
Question 2:
There are a lot of offers at the moment, giving 50% - 75% off the first year's premium. Monthly cost is working out at about €29 (cheaper than I'm paying at the moment). However, there are big discounts for the first year e.g. €150 total for the first year, then €342 per year thereafter. This sounds good, but does this mean that I cannot move insurer again in a few years if I find a better deal? One company I spoke to yesterday said that the discount was based on the 30 years of cover and that I would be in breach of the discount agreement if I cancelled the policy in the future. Is this correct?
Can someone shed some light on this please?
Cheers,
digweed
I currently have mortgage protection (terms based) life assurance for myself and partner, which we were required to take out when we took out a mortgage 5 years ago.
Now that things are a lot tighter, I was looking for ways to reduce this cost, while maintaining the required cover for the mortgage.
Remaining term: 30 years
Mortagage: €306,000
I think the 'terms' option is more expensive than the basic. I've been shopping around and there seems to be good deals on mortgage protection now.
Question 1:
How easy is it to cancel or get rid of my current policy and switch to a new provider? Are there any penalties or things to watch out for?
Question 2:
There are a lot of offers at the moment, giving 50% - 75% off the first year's premium. Monthly cost is working out at about €29 (cheaper than I'm paying at the moment). However, there are big discounts for the first year e.g. €150 total for the first year, then €342 per year thereafter. This sounds good, but does this mean that I cannot move insurer again in a few years if I find a better deal? One company I spoke to yesterday said that the discount was based on the 30 years of cover and that I would be in breach of the discount agreement if I cancelled the policy in the future. Is this correct?
Can someone shed some light on this please?
Cheers,
digweed