Can I use my employer's life assurance as mortgage protection policy?

S

Sparky1972

Registered User
Messages
32
Hi all,

Looking for some insight. I have mortgage protection cover on my mortgage that I pay for monthly.
With my new Employer, I automatically have Life Assurance cover which is pretty top notch.
Can I now assign my Life Assurance cover from my Employer as protection for the Mortgage and cancel the mortgage protection policy that I pay for monthly.
What would be the process to do this, if feasible?
 
I wouldn't dream of doing that. If/when you change employment you may struggle to get cover depending on your health status.
 
Death in Service cover cannot be assigned to a lender so I'm afraid you just can't do it.
 
Dave Vanian said:
Death in Service cover cannot be assigned to a lender so I'm afraid you just can't do it.
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OP says its life assurance not death in service.

Check if you can keep the policy in place (paying the premiums yourself) if you leave your employer.
 
Thirsty said:
OP says its life assurance not death in service.

Check if you can keep the policy in place (paying the premiums yourself) if you leave your employer.
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If his employer is paying for it, it is death in service. It is a benefit that will pay out if he dies when in service to his employer. Whether he is a member of a large scheme or a one person executive term cover plan, it cannot be assigned. The OP is not the owner of the policy.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Reactions: Leo
Thirsty said:
Which is why I suggested to OP that they find out if they could keep the policy in place - that would confirm to the OP if they did have the Life Assurance they thought they had.
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Whether or not the OP has the option to continue the Death in Service cover if they leave the employer is irrelevant to the question asked.
 
Dave Vanian said:
Whether or not the OP has the option to continue the Death in Service cover if they leave the employer is irrelevant to the question asked.
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On the contrary if the OP can continue the Life Assurance policy by paying the premium themselves, it means they have control over it.

My employer pays my Health Insurance if or when I leave my employment I can continue paying the premiums myself and maintain my coverage. I have control over the policy.
 
Both your points are completely irrelevant. Banks don't deal in "ifs". The fact is the the OP is not the owner of the policy and may never become the owner of the policy. The policy cannot be assigned now which is the requirement to get the loan. If the OP leaves his job in the future and can take over the payment of the policy (which he can't because it would be structured as an Executive Term Assurance policy), he can then cancel his existing mortgage protection policy.

Health insurance is not life cover and the structure of it isn't wrapped in a pension policy or written under trust. They are so far apart, it's not even apple and oranges.
 
Thirsty said:
On the contrary if the OP can continue the Life Assurance policy by paying the premium themselves, it means they have control over it.
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No it doesn't. It means that they might have an option to continue the cover themselves after they have left the employment. They don't have control over it while they are in the employment. In cases where such an option is provided, it is exercised by starting a brand new policy on leaving the employment.
 
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