Mortgage Protection

H

happybunny

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I took out Mortgage Protection with my Mortgage Provider as I was under the impression I had to have it. I have two questions really!
1. Do I have to have Mortgage Protection?
2. Would it be better to have Income Protection?
 
happybunny said:
1. Do I have to have Mortgage Protection?
2. Would it be better to have Income Protection?
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1. No , you only have to get Life and house insurance.

2. How stable is your job , could you afford payments if you needed a few months off sick ?
 
Mortgage Protection and Mortgage Repayment Protection Policies

Not that "mortgage protection" can easily mean mortgage protection life assurance rather than mortgage repayment protection insurance. In general the former is mandatory for owner occupiers while the latter is optional. In many cases more general permanent health insurance or income protection insurance may be better value than mortgage repayment protection insurance.
 
happybunny said:
I took out Mortgage Protection with my Mortgage Provider as I was under the impression I had to have it. I have two questions really!
1. Do I have to have Mortgage Protection?
2. Would it be better to have Income Protection?
Click to expand...

You dont have to take it out with the lender, shop around, me and the missus have a bare bones policy that covers us for €250,000, it costs €27 per month. They tried to talk me into the all singing all dancing policy for €52 per month, they are all chancers....is that a generalisation....
 
Froggie said:
You dont have to take it out with the lender, shop around, me and the missus have a bare bones policy that covers us for €250,000, it costs €27 per month. They tried to talk me into the all singing all dancing policy for €52 per month, they are all chancers....is that a generalisation....
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We did the same as Froggie, with almost identical amounts, but paid an extra €5 to make the Life policy Convertible at any stage in the 25 years without the need for a medical or increased fee's.

I agree the all-singing/all-dancing policy is not good value, but some things are very useful, especially if you intend to move house in the next 25 years. Suddenly you are not 25 anymore, but 40 with a gammy ticker :) In that case you Life Policy will increase substantially if its not convertible.
 
I am not sure if I am reading your post correctly paddyd but, the conversion option does not guarantee the new premium that you pay, if you convert it to another type of policy.

The premium that you will pay in the future (on the converted policy) will be will be reflective of the market rates applicable for that insurance company and your age at the time of conversion.

The main benefit of the convertible policy is the 'without medical evidence' in the future feature.
 
F. Kruger said:
I am not sure if I am reading your post correctly paddyd but, the conversion option does not guarantee the new premium that you pay, if you convert it to another type of policy.

The premium that you will pay in the future (on the converted policy) will be will be reflective of the market rates applicable for that insurance company and your age at the time of conversion.

The main benefit of the convertible policy is the 'without medical evidence' in the future feature.
Click to expand...

You are correct Freddie, its just converted without a medical, but with increased fee's according to age/loan alone.
 
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