dual mortgage protection insurance policy on single name mortgage with AIB - AIB makes problems

Hi

got a mortgage with AIB in my name only as the wife is not working due to lockdown.

For the mortgage protection policy I've got dual life protection policy for my wife and myself with Royal London. A dual life protection policy means that if something would happen the insurance would continue for the other person. So the legal requirements are definitely met here and we have even more cover than legally required.
AIB is now questioning that and would like to have a policy just in my name but are so far not able to provide a reason for their "requirement".

I have checked as with a colleague who also took out a mortgage recently (albeit with BOI) and she has the same arrangement – mortgage only in one name – mortgage protection policy in two names – no problem at all.

Can they force me to change the policy? AIB behaved in general quite unprofessional throughout the whole application process - they e.g. asked my company for paper Salary certificates and didn't want to accept a pdf version. My HR colleague had to email and call them in order to sort that out....


Thanks
Merowig

They are being officious. The policy will be assigned to the bank so if you or your wife dies, the proceeds will be paid to them. As she is not on the mortgage, they want it in your name only. It shouldn't make a difference. You probably have some kid with no experience ticking boxes and saw something a bit different and rejected it. I wouldn't back down. Just get your wife to sign the deed of assignment too and the problem is solved.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

Totally agree with Steven!

Got email response - they insist on mortgage protection my sole name - also called with same result. They claimed there are legal implications here.
My wife already signed everything which was signable.

AIB also first rejected the mortgage policy I have received because Royal London gave me one free month and the start date on the first page was in December therefor not in November. Bonkers/Royal London offered then to call them and only when I passed this offer on to AIB they were fine with it.

They were absolutely terrible to deal with. I will file an official complaint but I do not expect much. I have contacted now Bonkers to get the insurance policy adjusted....

I would think that AIB have an each way bet here. You are the sole mortgage holder, but they have a life policy covering both deaths. Its a win/win for them, no??