Life Mortgage protection query relating to my Dad

Query relating to my Dad’s mortgage protection policy.
He took out a re-mortgage 5 years ago; he is 59 now and has approx. 20 years to run on re-mortgage. The money was used basically for living expenses when his work dried up, so he had the cash in his bank and is paying the re-mortgage from this – not a great strategy I know but he had been self-employed for 20 odd years and didn’t think he was eligible for social welfare.
Anyway the upshot of it all is he has approx. 20K remaining on deposit and a balance outstanding of 170k on the re-mortgage. Currently he is receiving social welfare (for him and my mother – who doesn’t work) and is up to date with all payments, bills etc… he has no other loans. At the moment he has a shortfall each month of about €600 which he pays from the money on deposit. My sister and I are committed to helping my parents out and can hopefully help him out by transferring €200 – 400 a month to him.
Ok getting to my question now, he is paying approx. €350 per month in mortgage protection (smoker) on a reducing balance to cover the re-mortgage. I’m wondering if perhaps we should cancel this as it is costing a lot and if he outlives the mortgage he will have paid over €80,000 to this policy. Will the bank be notified if he cancels it? I don’t see how he can afford it, would he be better saving the €350 per month? He would be a bit nervous about cancelling it, in case the bank starts sending letters.
We were thinking that maybe he should take out a life assurance policy for say €100k and so if he does die my sister and I can use this to help us pay the mortgage until the house can be sold (i.e. if my mother remains in the house) he has another life assurance policy which will be paid to my mam if he dies, which we don’t want to include, we are considering that as her money for living expenses, if that makes sense. He has a small pension which will pay out about €15k in 6 years and then €2.5k per year afterwards.
We have taken his monthly expenditure down as much as is possible, but are concerned about the €600 per month shortfall when there is only €20k left on deposit. I would appreciate any advice regarding the mortgage protection?

The mortgage bank aren't informed if you cancel life assurance, it happens frequently when people change provider for their life assurance, which you can always do.

Just wondering how much cheaper the premium for life assurance on 100k would be though? If its costing 350 pm on 170k....

Depending on the figures, I think your suggestion of life assurance for 100k may be a runner, it could pay down the mortgage sufficiently that you and your sibling(s) might be able to cover the payments on the remainder should the need arise

If the policy is assigned to the bank then the bank are informed.

Coupled with borrowing money for use in this way I'm puzzled as to why he is paying 800% more for a mortgage protection policy than he should.

That premim seems huge. Do you know the exact cover he has.the bank will be notified of any change but there is definitely better value out there. Sounds like he may have serious illness cover also included.it could also be a term plan instead of mortgage protection...
Have you specifics?

Hi sna1998
Your dads policy seems expensive the cheapest at todays price is around 180 per month on a reducing cover basis (ie mortgage protection). Couple of points
1) There may be a medical loading on the current plan
2) It could be a level term plan
3) Was it done directly with the Lender
You can waive with agreement from the bank the need for life cover if you are over 55 but i would consider this carefully before deciding what to do. My advice on reading is to select a level term for approx 100k which would cost approx 135 per month and you can put the saving to the shortfall. Include the bank in your decision and get their agreement would be the best approach. Hope this helps and remember do not cancel the existing plan until a new one in whatever format is in place.

Thanks for the replies and advise, I will check out getting cheaper quotes. Will reply with some options hopefully.