3 Life Ins Policies Can I cut down?

M

Mommah

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€40pm covering mortgage on 1st hse, joint life
€140pm covering mortgage on 2nd hse joint life(same size mort as no 1...but we were older taking out)
€270pm cover OH recently taken out (without asking me :rolleyes:, I guess I can be thankful it wasn't on my life!)

I'm inclined to think we are over insured, plus its a massive bill every month.
Is there a way to trim this down???
 
You'd need to post your respective dates of birth, whether or not you smoke, the amount and type of cover each policy provides and the term of each policy before anyone could comment on whether or not the prices could be improved.

If you want to dig deeper and get an answer to the question "How much cover do we need?", you'd really need to be divulging details of your income, expenditure, assets, dependents etc. That might be a conversation to have with your broker unless you're happy to post all your personal details on this site.
 
Thanks Liam and you're right I don't want all my gories on-line ;)
We negotiated these policies through different agencies.

For example (I need to check this)
the €40pm covers the mortgage on property no 1
The €140 on property on property no 2

The mortgages are the same.
BUT I think the €140pm policy is a level balance and the €40pm is possibly decreasing balance.

Can you change this to decreasing balance?
Is it wise...or should I consider this my life insurance policy?

I am considering selling property no 1 and if I do can i reassign the cheaper policy to property no 2 and cancel the more expensive policy?

Hope you haven't lost the will to live yet!
 
Do you really need insurance on the 2nd property? What is the worst case scenario on that property if one party dies?
 
Thanks Complainer.
The insurance for both mortgages was a requirement of the lender.
We didn't have a choice.
 
Mommah said:
The insurance for both mortgages was a requirement of the lender.
We didn't have a choice.
Click to expand...
Is the 2nd home an investment property, or a holiday home or what? I have a vague recollection of it being illegal for lenders to insist on mortgage protection insurance on anything other than the family home.
 
Well both were family home in the beginning. Then we moved to no 2 planning to sell no 1 when a massive development on the road was completed. Bad call with hindsight! :rolleyes:
Both are currently rented out. But we are returning to no 2 in the autumn...could be another bad call! :rolleyes:
 
I would tell the lender that you are dropping the cover on no. 1 now. There is little benefit in having life cover on an investment mortgage.
 
Complainer said:
I would tell the lender that you are dropping the cover on no. 1 now. There is little benefit in having life cover on an investment mortgage.
Click to expand...

That's a bit of a sweeping statement to make without knowing details of Mommah's circumstances. If there is one earner in the household, for example, life cover on the investment property mortgage would ensure that in the event of the breadwinner's death, the survivor would have an income from the rent.

Or maybe they already have sufficient life cover for personal needs.
 
Mommah said:
The mortgages are the same.
BUT I think the €140pm policy is a level balance and the €40pm is possibly decreasing balance.

Can you change this to decreasing balance?
Is it wise...or should I consider this my life insurance policy?
Click to expand...

If the mortgage is a repayment (capital and interest) loan, you should be able to switch to a decreasing policy.

Mommah said:
I am considering selling property no 1 and if I do can i reassign the cheaper policy to property no 2 and cancel the more expensive policy?
Click to expand...

If the policy has sufficient cover and the expiry date is OK (i.e. the policy doesn't expire before the mortgage does), you could do this, yes.

Mommah said:
Hope you haven't lost the will to live yet!
Click to expand...

Hell no. There's far too much chocolate in the house to be consumed!
Happy Easter.
 
LDFerguson said:
That's a bit of a sweeping statement to make without knowing details of Mommah's circumstances. If there is one earner in the household, for example, life cover on the investment property mortgage would ensure that in the event of the breadwinner's death, the survivor would have an income from the rent.

Or maybe they already have sufficient life cover for personal needs.
Click to expand...
That's true, it was a bit sweeping. I suppose given that the OP asked the question about cutting down, I was just pointing out one, obvious place to start. However, maybe the new policy that the OP's OH has just taken out should be reviewed first, given the size of the monthly payment.

It is worth checking of the OP or the OH has any life insurance through work, usually through a pension scheme.
 
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