Mortgage life assurance - Advice

G

guessaname

Registered User
Messages
32
Hi all,

can you please give me some advice here?

I have Mortgage Life assurance policy from Caladonian life for the period of 30 years on my 300k mortgage. I took it through 123.ie where I paid E150 first year as there was a discount from 123.ie and since 2 years I'm paying around E350 per year (@E30 per month).

Can I now switch to any other cheap Mortgage Life assurance provider or do I have to stick to Caladonian life for all 30 years? 123.ie is still offering 50% discount on first year premium, can I rejoin it as a new user to avail 50% discount? What if I keep on switching to new provider every year and get 50% discount?

thanks
G
 
There is nothing to stop you changing life assurance provider to avail of special offers. You can cancel your existing policy before its term is over.

Some things you should bear in mind however are;

1) Your current mortgage protection policy is most probably assigned to your lender. In order to cancel it, they will want a new policy in force and assigned to them before they release their interest in your existing policy.

2) There are a number of online brokerages offering better than a 50% discount on the first years premium so its worth shopping around more.

3) Each year you switch you effectively take out a new policy so there is a danger that if your health deteriorated at some point you would be stuck with whatever company you are with at the time. Also each year you are a year older so the normal premium before discount will most likely rise.

Hope this helps, good luck with your bargain hunting.
 
So you (not you StevieC you understand but all discount brokers) get a case and do a high level of discount year one to get the business but in reality you depend on uplift. Spanner in the works is the business goes off after a year so uplift is clawed back the following year so after tax the profit margin is only a few cent or project further you end up owing the insurance company commission and go out of business? Anyway it will force insurers to pull out of uplift. Very fine line on level of discount, persistancy and viability even for a one person operation.

guessname as a matter of interest on the application form does the company ask you how many years you need the cover for? Can you see anything in the declaration that may invalidate a claim.
 

Once the case is left in force for a year, there is no clawback of commission on life cases for the broker so there is very little chance that brokers ending up having to give back commission to the life office.

In my experience only a very small percentage of people shop around every year as there is diminishing marginal returns to doing this, most of the cases we have done on discount basis have remained with the insurer we placed them with.

To be honest I dont envisage discount brokers going out of business unless they get their margins wrong or are badly run. Many of the discount brokers currently in the market are established brokers that have traded for many years and know exactly how the market operates.
 

Yes on the application form it asked the number of years I need the cover. I selected full mortgage term (30 yrs)
 
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