Life Insurance or Mortgage Payment Protection

[mozzer]

Hi,

I'm in the final stages of mortgage approval with the EBS. I'm buying a house with my partner (second time buyers) for 270,000. I've taken out mortage payment protection with Irish Life not with the EBS. However, in conversation with the lender (EBS) he says we'll have to take out Life Insurance with our mortgage. I don't recall having to take out Life Insurance on my first mortage - can anyone advise as to whether Life Insurance is essential? If it is, am I obliged to take it out with the EBS or can I go to a third party to get it cheaper? Any views on this would be most welcome....Thanks

 

[Sarah W]

No, you are only require to have mortgage protection (decreasing life insurance for the term and the amount of the mortgage and you can source this from any Irish insurance company. The EBS can not insist on you taking cover through them.

Sarah

www.rea.ie

 

[ClubMan]

I've taken out mortage payment protection with Irish Life not with the EBS.

Do you really need this? Check the detailed terms & conditions to make sure that the premium is not inflated with commissions/charges and that the circumstances under which it will pay out and for how long are not very limited as is often the case. These policies often represent very poor value for money in my personal/amateur opinion.

However, in conversation with the lender (EBS) he says we'll have to take out Life Insurance with our mortgage.

Mortgage protection life assurance is mandatory for all (bar some exceptions) owner occupier mortgages under the [broken link removed]. You don't have to buy this from the lender either. Shop around for this. See this thread for more on mortgage protection life assurance and related insurances.

If in doubt get independent, professional advice. Don't depend on your lender or any other tied agent for such advice. They are simply sales people.

 

[mozzer]

Cheers Sarah & Clubman,

I'll look into this more closely....thanks for the advice.

Mozzer