mortgage protection question

K

kim

Registered User
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Hi

I took out my mortgage in 2006 and I took out the mortgage payment protection with the bank, last year it went up from 31.09 per month to 41.56 per month and I just think this is a bit much, I am thinking of looking for mortgage protection elsewhere and just want to ask do I look for protection on the amount outstanding on the mortgage or the original sum I borrowed for and also what do I put in for the duration of the mortgage IE there is 31 yrs left now? and does anyone know any good websites where I could get a good quote
 
Are you taking it out to cover redundancy?
It's tough to get a payout as there is an exclusion "for anyone who knew there was a chance they may be made redundant" or words to that effect.

If you are looking for a policy to cover you being unable to work due to sickness or injury then income protection is a much better product.

To answer your questions - as I understand it, you cover your monthly repayments e.g €800 per month so the amount of the mortgage is not used in calculating how much your premium will be.

This is mortgage repayment protection not mortgage protection (clear mortgage on death) I take it?
 
Interesting question Kim. I was not aware you could purchase mortgage protection in Ireland?. I thought you just take out a life assurance policy to cover the amount of the mortgage. When we lived in Oz and took out our first mortgage in 1989 we bought mortgage protection. It was a once off payment. I think 2000 dollars. it lasted for the life of the mortgage. When we returned to Ireland we noticed people were taking out life assurance policies to cover their mortgages. Maybe that's changed now.
 
Sorry about that did not notice it was a payment protection you were talking about.
 
Mortgage protection policy = insurance against death = compulsory

Mortgage payment policy = insurance against unemployment, disability, etc. = optional
 
Protocol said:
Not only can you, but you must.

(There are some exemptions)
Click to expand...

I know they call it mortgage protection but is it not in fact life assurance that is used to pay of the mortgage in the event of death.
 
Yes, mortgage protection is a type of life insurance

Life insurance : sum assured remains level for the term of the policy
Mortgage Protection : sum assured reduces as the mortgage is paid off
 
NorfBank said:
Yes, mortgage protection is a type of life insurance
Click to expand...
Yes in Oz lending institutions are no allowed touch a persons life assurance...it must go to the family of the deceased. Mortgage protection is a different thing taken out by the borrower at the draw down of the mortgage and is a once off payment.
 
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