Life Cover for 30 years, Mortgage for 25!

Y

yop

Registered User
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Guys,
Reviewing every cost I am paying out now and just spotted that our life cover is for 30 years while our mortgage is for 25.
I know I can stop the life cover when the 25 years are up, but would I be paying more on my monthly payments because it is down as a 30 year or does it make feck all difference?

Thanks
 
When you took out the policy it probably was more expensive to take out a 30yr term rather than a 25 yr term. Was there any reason you took out the policy for longer? You could look at getting new quotes now based on a 25yr term but obviously you're older now then when you took out the initial policy so what you gain on the swings you may lose on the roundabouts, but its worth checking out.


www.powerinsurances.ie
 
I'd definately get some quotes done for the outstanding term. Adding 5 years to the end of a policy can increase it significantly as there is more likelyhood of a claim in those last 5 years as you get older.

Also your sum assured is probably less now and this will offset somewhat your difference in age.

There is scope of saving in my opinion.
 
Yop,
Most of the online brokers will also offer you a significant first-year discount when you take out a new policy. I did a similar review myself recently, and managed to get 90% off the first year premium on my mortgage protection policy.

As for the extra years on your current policy, I agree with previous replies but would suggest that if you do switch to a new policy it might be prudent to add just a little bit of extra cover (I added 1 year and about €20k in cover) just in case you need to take a top up on your mortgage, or a payment moratorium at some stage and/or possibly extend the lifetime of your mortgage.
 
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