No notification of annual direct debit

Hi, I signed a DD form a couple of years ago for an annual payment for a mortgage protection policy. Should the company give me notice of it? I cant believe they don't for their own sake to avoid a bounced DD. It was a chunky payment of €800 and although I was aware of it technically, I had totally forgotten about it. It also doesnt really give me the opportunity to shop around for a more competitive quote. I get notice of my health insurance renewal every year, surprised that the company doesnt send a DD reminder. Should they issue a reminder? Thanks

Unlike your health insurance, you aren't renewing your mortgage protection policy, the term on that is term you originally agreed with them (probably the same as the term of your mortgage). There is no need for them to remind you because it is still within the term. Maybe no harm to take the reminder though and start looking now at changing the cover from next year.

No, they don't. You signed up for it on the annual direct debit basis. If you wanted a letter, you should have opted for cheque. If it bounces, they will try again for it. If it continues to bounce, the cover will lapse.

When you sign up for the mortgage protection cover, you give the term that you want and it is priced accordingly. It's not designed for you to shop around each year. In fact, as you get older each year, it is likely it will become more expensive.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

Thanks for the replies. I actually dont want to shop around being honest, the medical questionnaires etc are a nightmare the first time so happy to stick with it. Just surprised that they dont send a reminder. Will have it well flagged for next year. Thanks

so-crates said:

Unlike your health insurance, you aren't renewing your mortgage protection policy

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That is a very good distinction.

I am surprised that they don't remind people that the DD will be taken. However, they might figure that this would cause the customer to shop around.

Brendan

Although most of the service providers I deal with supply notifications for DDs, I stick them in the phone calendar as reminders with no end date giving myself a couple of day's prior notice. For hefty DDs (€800 is fairly hefty for me) I'd set the reminder for a week/10 days in advance

remey said:

I cant believe they don't for their own sake to avoid a bounced DD. It was a chunky payment of €800 and although I was aware of it technically, I had totally forgotten about it.

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It would not matter to insurer. If you don't pay you lose your cover. It will mean more to you than it is to them.

Any reason why you are not paying monthly, none of the risk and if not mistaken they are the same price. It would certainly be easier to manage also and don't have to remind yourself.

mathepac said:

Although most of the service providers I deal with supply notifications for DDs, I stick them in the phone calendar as reminders with no end date giving myself a couple of day's prior notice. For hefty DDs (€800 is fairly hefty for me) I'd set the reminder for a week/10 days in advance

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I find this a very handy reminder and do the same for all bills. I also check the Payment Logs option on current account on AIB regularly. It pays to know what's coming down the tracks.

A, to be sure, to be sure reminder on something like the pet insurance is a deffo. I don't do D.D. on the pet insurance but am aware that if premium is not paid especially on older animals it suits the insurer for the policy to lapse.