Life Assurance/Mortgage Protection policy

Arddon

i had to take out a life assurance/mortgage protection policy when getting a mortgage a number of years ago, probably nothing abnormal there.

it is costing me €55 a month - which i'm told is quite high...

Are there cheaper options out there or is this the "going rate"?
Maybe it depends on circumstances...

Also if I were to cancel this policy in favour of a new one, what happens the €55 per month that was paid for a number of years...is this just written off?

thanks

Hicklet

Hi Arrdon
The price depends on the type of policy you have, level of life cover and amount on loan - is it a decreasing mortgage protection plan vs. level life cover, and is there serious illness cover on it too? Check your existing plan with an independent advisor who will be able to give you updated figures for a new plan. Your loan and term will be shorter, but you will be a few years older so there may not be a saving. You could probably get better value out there but don't cancel your plan without getting the proper advice as serious illness cover rates have gone through the roof over the past few years and it may be the wrong thing to do at this stage.
With regard to your €55 / month - assuming it is a term planb - yes, that is 'written off' - that's the joys of term assurance.

broker2008

Post the quote details and we will be able to tell you whether you are over paying or not including smoker status, the death benefit and term of the policy. Assuming that health is ok.

Drumpot

Life Assurance is a policy one should take out in the hope that they never need to claim on, but in the event a claim is made, your family or benefactors will be left in a more financially comfortable situation.

I would not subscribe to the opinion that Life Assurance is simply "money wasted" or money "written off".

Im not trying to be patronising or sarcastic here but do you consider Car Insurance or Travel Insurance wasted money if you dont claim on them or do you find they at least give you some peace of mind?

Thats exactly what Life Assurance is supposed to do. Nobody wants to think about dieing or getting critically Ill but the fact of the matter is that we will all die at some stage. Depending on what liabilities we have, the Assurance we have to cover them will decide how our families will cope Financial after our departure.

With regards to your questions on the quote. Like previous posters said, you would need to either post more details here or PM one of us.

Life Assurance is decided mainly on:

Age - Smoker Status - Amount of Cover - Term of Cover - Medical History

Any other extra bits (indexation, conversion option ) cost more.

Did you get several quotes when you took out the life Assurance or did you simply take it out with the mortgage provider? Chances are that you took it out with Provider and they didnt give you the best rate in the market.

Whatever you do, I would advise that you be fully aware of what you are covered for now and what your new policy will cover you, before changing or cancelling your existing cover.