Two mortgage protection policies - cancel one?

[CharlieC]

Hi

Had an mortgage life protection policy on my old house
Assume it was decreasing term

I took out a new policy with different provider 2 years ago when I moved

Should I cancel the old one?

I am married with 2 children so thought it would cover either of us if anything happened, over and above clearing the mortgage

It is 40 euro a month but I think I would be better doing something else

 

[ClubMan]

Re: 2 Policies - Cancel one?

Depends on the specific details of the policy but I would be inclined to look at cancelling it and, if necessary, taking out some general life assurance. Make sure that your existing mortgage protection life assurance cover is competitive and if not shop around for better value.

 

[MichaelBurke]

Re: 2 Policies - Cancel one?

Did you take them out with a broker, if so they will explain the options available to you and the consequences of your decision.

And before you suggest he might have a vested interested in maintaining the policy the majority of his commission was in the first year and he is getting very little since (should be disclosed on your policy document).

Things have changed over the last number of years so it might be more favourable now and could pay to shop around.

 

[PM1234]

Re: 2 Policies - Cancel one?

Depending on the T&Cs of the mortgage protection policy they may pay out only to cover the existing mortgage and in the event of the mortgage being cleared etc they may not pay out as some of these policies are purely mortgage protection policies. You should look into this.

Taking out life cover in the interests of dependents you would be better off with a level term or maybe a whole of life policy so there are funds available rather than decreasing funds in the event of having to claim.

I'd recommend you speak to a broker or two to see what best suits your needs.

 

[loads]

A level term plan would offer your family more financial protection than the old mortgage protection plan .Its unusual to have 2 mortgage protection policies when you only have 1 property.Go to brokers online like www.firststep.ie or www.123.ie to get quotes instantly.They also offer discounts on the first years premium.If you cancel the old plan you will have at least 40 euro a month towards better cover, but don't cancel the old plan till the new one is in place.