Life Surrending my policy with BOI Life

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walletpod

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I am switching my life cover from BOI Life at the moment. I have to hand a quote from the new provider - and am going though the process of surrendering my existing policy with BOI Life. I spoke with a lady this afternoon from BOI Life who promised to send me out an encashment form, but warned me that she would "have to check with the mortgage department to ensure that they are ok for you to cancel your Life cover with us".

Does this sound right? I have read the t's & c's of my mortgage with BOI and it does not mention as a condition that I should keep my Life cover with BOI Life. I'm free to shop around and find the best deal for me, aren't I? As long as I can prove that I have active Life cover to the mortgage provider, then I should be fine - shouldn't I?
 
Yes, you can shop around for life cover at any time, you do not need to buy from your lender.

Once a life policy is in place that covers the amount and term of the mortgage then the lender must accept this.

Also you do not have to give BOI a quote from the new provider, it's none of their business, more than likely they will match it to try and keep the business on their books - it looks like it's too late for that.

It is advisable to have the new life cover in place before cancelling the old policy - just in case something happens before the new policy issues.
 
Thanks for the advice NorfBank. I'll ensure cover is in place with the new provider before surrendering the current cover.
 
You must have the new policy in place before BoI would release the old policy. Your mortgage conditions would state that you must have an active life cover policy that at least covers the mortgage amount. This is why the she need to check with mortgage dept. The mortgage dept would say no that you cannot surrender the policy until you place a replacement policy in its place
 
Just by way of update - and also an admission on my part. I realise now that I reacted way too hastily with this. Upon reflection (and a quick discussion with my partner) we decided to approach BoI for a re-quote rather than surrender the policies and seek cover elsewhere. For a start my Life Cover itself was over 120k more than the outstanding balance of my mortgage - so this was reduced to match the mortgage. Is it best practice to reduce the Life Cover to mirror your outstanding mortgage balance per year? Also there were a number of add on's (particularly on my policy i.e. my policy was indexed to increase the cover by 5% each year) which I do not need / want, and when discarded reduce my premium by half.
 
Even with your reductions and amendments to the policy, Bank of Ireland's policies are generally more expensive than some other companies.

Its still worth shopping around to see if you can get better value.


www.CheaperLifeAssurance.ie
 
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