What happens to my life insurance on my mortgage now that a new bank has taken over?

M

mary newton

Registered User
Messages
13
So we are or rather were with KBC until the recent takeover by Pepper. There are two policies in place one covers the mortgage in the event of my spouse or myself dying and the other is just a lump sum of 125K. I have heard stories albeit anecdotal to suggest that when a new bank takes charge of my mortgage that the life insurance companies in my case Irish life may not cover anymore. This would be a disaster for us as we have had the policies out since 2008 and have paid 120 euro per month without fail. There is another 8 yrs left until the mortgage and the insurance is over. I went on to my policy and it states that the assignee is indeed KBC. i do not want to contact them in case they see a way out although that is probably just my suspicious nature. Surely the insurance must still hold otherwise every policy in the country would be affected and that just isn't fair. Can anyone advise me please? Thank you.
 
I recommend you change the beneficiary of the mortgage protection insurance accordingly. Talk to your insurance company.
For the lump sum insurance - unless the other insurance doesn't cover the whole outstanding mortgage, the bank shouldn't be on it at all.

Also, shop around for a new mortgage protection insurance. 120 Euro per month is a lot.
 
The only time that a life insurance company would cancel your cover on change of lender is if the Mortgage Protection life cover was arranged as part of a group scheme with the lender. Those are quite rare. But you can check this easily by ringing or e-mailing Irish Life.

Assuming that your policies are not part of any group Mortgage Protection scheme then the change of lender won't affect your cover at all.
 
You can't comment on yhe quote if you don't know what amount us covered there could be medical issues that necessitate a higher premium. Is it mortgage protection reducing in line with the outstanding balance, or some other benefit/type of policy.
In general best to review, but as you get older the premium could rise depending on mortgage balance, term, health etcm
 
You must log in or register to reply here.
Back
Top