Life Assurance Question

P

pipedreamer

Registered User
Messages
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Hi all

My offer has just been accepted on a house and mortgage all in place thankfully but I just have a quick question in relation to life assurance.

I consolidated a few loans about two years ago with PTSB and at the time a condition of the loan (rightly or wrongly) was to take out life assurance to cover them etc - I took it out with Irish life and its been coming out every month by dd - my question is as part of my mortgage clearly I have to have life assurance so do I just amend the policy I have already or can I get out of that one and go for another institution that will probably be offering a better deal? Do I have a choice I suppose is my query?

Thanks
 
Thanks for this.
Sorry stupid question now but would I be taking out a second policy for the mortgage amount and can you run two policies concurrently?
 
If you can get a better deal then you can put the new policy in place, assign it to the lender, inform the lender and then cancel the old policy and payments.
 
ClubMan said:
If you can get a better deal then you can put the new policy in place, assign it to the lender, inform the lender and then cancel the old policy and payments.
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Just did that this week and saved myself €100 Per Anum. Mind you the wife did give up the smokes 18 months ago.
KK
 
Just got a letter back from the bank after notifing them I was switching mortgage protection provider.
Im paraphrasing but it went like,
We dont need mortgage protection as security on your loan. Legislation requires it be in place when you draw down the loan. After that, what ever you do is your own business.
 
kkontour said:
Just got a letter back from the bank after notifing them I was switching mortgage protection provider.
Im paraphrasing but it went like,
We dont need mortgage protection as security on your loan. Legislation requires it be in place when you draw down the loan. After that, what ever you do is your own business.
Click to expand...

Did you get the letter from the original lender? It sounds unusual. Your new provider may well make it a requirement of your mortgage.

Worth bearing in mind that if you have dependents its advisable to have it in place if you are the main earner.
 
PM1234 said:
Did you get the letter from the original lender? It sounds unusual. Your new provider may well make it a requirement of your mortgage.

Worth bearing in mind that if you have dependents its advisable to have it in place if you are the main earner.
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The mortgage didnt change, only the protection cover. I got my broker to send the policy to the bank and I sent a cover letter explaining what I was doing. The bank, UB, say its not a mortgage requirement aftet the first year. I also thought it sounded strange but its in black and white.
I kept the origional cover in place until I got the new cover anyway.
 
Sounds very odd. The Consumer Credit Act requires owner occupiers to have mortgage protection life assurance cover for a mortgage with limited exceptions to the rule where waivers are granted (e.g. due to age - over 50s - or medical conditions making it difficult/impossible to obtain cover) at the discretion of the lender. Maybe this is a mortgage on an investment property rather than a PPR?
 
ClubMan said:
Sounds very odd. The Consumer Credit Act requires owner occupiers to have mortgage protection life assurance cover for a mortgage with limited exceptions to the rule where waivers are granted (e.g. due to age - over 50s - or medical conditions making it difficult/impossible to obtain cover) at the discretion of the lender. Maybe this is a mortgage on an investment property rather than a PPR?
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No, its my PPR.
Got better quote as wife now a non smoker 18months
Rang back asking what I need to do for them.
Told to send policy to their deeds and securities department
Sent in the policy and cover letter.
Got letter back from UB saying they only require mortgage protection be in place at mortgage drawdown. After that Im free to do what I want.
I dont have the letter with me now but will ring the bank tomorrow to confirm that its correct.
 
Just spoke with bank.
they confirmed what was stated in the letter.
They do recommend we have cover, but we dont have to have it if we dont want to and dont need to contact them if we move mortgage protection provider.
 
ClubMan said:
This is not in line with the relevant legislation as outlined above.
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I did ask her, does the credit consumer act require us to to have mortgage life assurance policy in place for the duration for the mortgage. She said not necessarly, and while they do recommend we have it in place they do not require it.
 
The "not necessarily" bit is pretty limited in the legislation and unless you are over 50 or cannot get any cover or a "reasonable" quote then you should havt it as far as I know.
 
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