Life Insurance mortgage question

R

robd55

Registered User
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Hi,

I recently reduced my mortgage from 120k to 20k. I have life insurance with Irish Life and mortgage with PTSB. Since my mortgage is now reduced should the amount of insurance I am paying Eur 14 be reduced in line with the mortgage reduction? Should I take mout my own policy for 20k?

Thanks
 
Up to yourself, it won't automatically reduce and you may find there is a minimum premium anyway. On the other hand if you pop off the higher amount will be paid out, do you have dependants?
 
Hi wbbs,

No just myself, only the parents would get the money if I died. So I am just looking to reduce my outgoings as much as possible and not give PTSB any more money (on the SVR with them).

Thanks
 
In that case you should consider moving to Term Insurance if not in place already. Much cheaper and more effective for the purpose.
 
As far as I know the minimum premium from any company for Mortgage Protection term insurance is €101.00 per year, so you should be able to replace your current policy with one costing that.

Liam D. Ferguson
 
For such a low amount remaining your bank may agree that you do not need life insurance at all.
 
Hi

The policy you are one might have a minimum premium and/or minimum life cover amount.
Whatever you decide, get a letter from the bank to advise what they would allow the Life Cover to be reduced to.

Micar
 
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