Mortgage Protection Insurance

i am lost as to what the best type of life assurance would suit me....there are so many phrases and different terminologies....
the lowest type of assurance i have been offered is €43 as a smoker (reducing balance type mortgage) but the bank are trying to push the dual life option for me which maintains a steady payment at death with a serious illness cover of 20k costing €95

what do people normally do ?? which option is the most suitable for someone who will probably sell in about three to five years time....?

I would go with the basic life insurance policy. Go to any website and try find a basic product. try 123.ie or insure.ie.
Tesco are also offering a very good policy , through Hibernian.

What the banks are trying to sell you is the all inclusive , mortgage protection repayments etc. Where by your mortgage is paid for some months should you loose your job.

I know a close friend who had some battle to get her payments from this mortgage insurance policy when she did loose her job !!!!

Also pay the policy for one year by cheque and not direct debit. This puts you in the driving seat every year to look for a better policy !! I have done this for years and has saved me a fortune in repayments !!

It really depends on your circumstances. ie are you married, have you dependents, do you get paid an income for long term absense from work due to illness ? if so you may want to consider a certain level of serious illness, if your single with no dependants, then I would suggest that basic decreasing life cover is all you require

chanceanarm wrote:
What the banks are trying to sell you is the all inclusive , mortgage protection repayments etc. Where by your mortgage is paid for some months should you loose your job... just to clarify, this is not what the bank are trying to sell, this is not serious illness ......

The higher the premium the more commission for the bank. I would always advise taking the cheapest, most basic life cover required by the lender. If you then decide you want PHI, serious illness cover or additional life cover you can arrange this independently and, in the event of a claim, the money goes to you rather than to the lender.

Sarah

www.rea.ie

could i also point you in the direction of LABrokers.

You should get a good quote, which will have a discounted 1st year.

chanceanarm said:

Also pay the policy for one year by cheque and not direct debit. This puts you in the driving seat every year to look for a better policy !! I have done this for years and has saved me a fortune in repayments !!

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i don't follow you - does this mean that you have to reapply every year for a new policy??

MPP is for the life of the mortgage and it's unlikely that you'll get it cheaper year on year as you'll be getting older and more likely to get ill etc.

Plus you'll have the the application procedure to go through which may include a medical etc. and the timing of finishing one MPP and starting another. IMHO the saving would have to be over 30 or 40 yoyos p.a. for that effort. (assuming average life of mortgage is 7 years)

Provided you get a good deal in year 1 then you should be okay.

BTW I second using LABrokers.

N.

btw - i contacted LAbrokers and got by far the most competitive offer !

i knew it, that man (John Geraghty) always comes through and he gives AAM a link on his front page

11.11.18 said:

btw - i contacted LAbrokers and got by far the most competitive offer !

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have to also add that I dealt with John 2 years ago I think it is now and find him a solid man.