Mortgage Protection Insurance

D

DOS19

Registered User
Messages
51
I intend to take out a reducing term life policy for my MPI, as I understand that it is the cheapest and most basic policy and that is what I want.

I have some brief questions and I would be very grateful for any replies

  1. What happens my MPI if I reduce the term of the Mortgage?
  2. What happens my MPI if I pay off the mortgage entirely earlier than expected?
  3. What happens my MPI if I borrow extra on my mortgage or extend the mortgage term?
  4. What if I sell the property and have no further need for the MPI?
  5. Can you switch MPI provider?
Thanks in advance.

P.S. From reading other posts, I presume labrokers.ie, monitum.com or 123.ie are the most competitive for a reducing term life policy?
 
1. Basic mortgage protection term cannot be reduced. If you reduce your mortgage term significantly it may be advisable to take out a new policy with the amended term.
2. You can leave the policy in place and use it as life cover until it decreases to zero or you can cancel the policy.
3. The policy will have to be cancelled and a new policy taken out if your lender insists on mortgage protection as a condition of your mortgage.
4. The policy can be cancelled.
5. Yes. If your policy is assigned to your lender, you can organise alternative protection and have the new policy assigned to your lender. The new policy will have to be in place before the lender will release their assignment on the original policy.

Note: a) Once the policy has been assigned to the lender you will need their authorisation in order to cancel it b)The above is for standard basic mortgage protection. Some policies may vary so it is important to read the terms and conditions of the policy you take out.
 
people are often confused with MPI. it is a type of insurance cover which you can effect even if you had no mortgage. it would of course be better to take out level term cover where the amount does not reduce.
 
i agree if you have no dependants it would not be an issue. basically what i had in mind was that persons should consider taking out level cover instead of decreasing cover.
 
Thanks for the answers...much appreciated

 
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