# 1 year mortgage protection insurance



## damson (17 Aug 2005)

Does anyone know whether any of the insurers will sell a life assurance policy of just one year's duration, which could be used as a mortgage protection policy? Or is 10 years the shortest duration (and cancel after year 1)? ...I assume the monthly premium for a 10 yr policy would be higher than that for a 1 yr policy since there's a greater chance of death during a 10 yr period than a 1 yr period so that's what an agent would try to sell, but if a one yr term is possible that's all I need...

(I have a separate investment which will mature in a year's time which I will use to pay off the mortgage, so I don't need more than one year's protection.)

Thanks.


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## voodoobazza (17 Aug 2005)

Regardless of the term the companies have a minimum premium amount usually €12 per month, so depending on your age and smoker status you might only have to pay this amount regardless ......


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## ClubMan (17 Aug 2005)

Normally the lender will require you to have a mortgage protection life assurance policy in place that covers the full term of the mortgage. If you clear the mortgage early then you can simply cancel the policy if you don't want to continue it. Some discount brokers may sell you mortgage protection life assurance policies for next to nothing in the first year as an opening offer. If you can get one of these then you may end up spending little or nothing on mortgage protection life assurance in the first year and then when you clear the mortgage you can ditch the policy if you don't need it.


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## damson (17 Aug 2005)

Thanks guys!

Voodoobazza - would BoI insurance ever use this minimum premium method?


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## cambazola (18 Aug 2005)

ClubMan said:
			
		

> If you clear the mortgage early then you can simply cancel the policy if you don't want to continue it. Some discount brokers may sell you mortgage protection life assurance policies for next to nothing in the first year as an opening offer. If you can get one of these then you may end up spending little or nothing on mortgage protection life assurance in the first year and then when you clear the mortgage you can ditch the policy if you don't need it.


 Can you cancel a policy half way through even if the mortgage hasn't been paid off, if you replace it by another policy for the outstanding amount? For example, if I get a policy with a big discount for the first year, at the end of the first year can I cancel it and move to another mortgage protection provider with a better rate?


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## Pexus1976 (19 Aug 2005)

Yes you can cancel a mortgage protection policy provided you have taken out a new one to replace it first. 

Eagle Star are offering one of the best rates at the moment


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## cambazola (19 Aug 2005)

Thanks Pexus.


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## DrMoriarty (19 Aug 2005)

> Can you cancel a policy half way through even if the mortgage hasn't been paid off, if you replace it by another policy for the outstanding amount? For example, if I get a policy with a big discount for the first year, at the end of the first year can I cancel it and move to another mortgage protection provider with a better rate?


1. Stop paying the premiums, and any policy will become void. Just pre-agree with your lender that policy A will be replaced by policy B (and that lender's interest will be noted on new policy).
2. Why not check with John Geraghty of www.labrokers.ie? Cost you nothing and probably save you some. Tbh, I doubt very much that BoI is giving you the best quote/terms for policy B... (open to correction, of course).


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## ClubMan (19 Aug 2005)

DrMoriarty said:
			
		

> 1. Stop paying the premiums, and any policy will become void. Just pre-agree with your lender that policy A will be replaced by policy B (and that lender's interest will be noted on new policy).


I thought that, as _Pexus1976 _says above, you generally needed to get the new cover in place before stopping the old policy?


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## DrMoriarty (19 Aug 2005)

Yep, obviously the dates would have to 'join up' or - more likely - overlap by a month or so, so that the lender is covered seamlessly. I should have clarified that Lender would have to be satisfied that policy B was in vigour (and Their interest noted) before you could safely let policy A lapse...

@ClubMan - just back from hols. Hope all is well on the Mini-Clubman front?


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## cambazola (20 Aug 2005)

Thanks for the info - I must see if it would be worthwhile to switch.


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