Paying way too much - help

patbrady877

How much do you pay?
PLEASE LET ME KNOW WHAT YOU ARE PAYING AND WHERE YOU GOT IT SO I CAN COMPARE PROVIDERS

Right I made the big mistake of submitting a few applications for life assurance with a few different brokers, and now they ring me 3 times a day to try and get me to buy from them. The one thing I have noticed is there is a huge difference in price, and I dont know why....

I have a policy at the moment and am looking for a cheaper alternative cos its costing me 120 per month (dont understand why the cost of this hasn't dropped in line with my mortgage repayments!?).

I need 550,000 over 32 years to keep my bank happy,

kmick

patbrady877 wrote: »

How much do you pay?
PLEASE LET ME KNOW WHAT YOU ARE PAYING AND WHERE YOU GOT IT SO I CAN COMPARE PROVIDERS

Right I made the big mistake of submitting a few applications for life assurance with a few different brokers, and now they ring me 3 times a day to try and get me to buy from them. The one thing I have noticed is there is a huge difference in price, and I dont know why....

I have a policy at the moment and am looking for a cheaper alternative cos its costing me 120 per month (dont understand why the cost of this hasn't dropped in line with my mortgage repayments!?).

I need 550,000 over 32 years to keep my bank happy,

120 seems a lot - let me guess you used the bank life assurance for speed. 123.ie and insure.ie both do good quotes. Some of them even give cash back in the first year. The monthly payment is the same and does not drop. They just average out the payment over the life of your mortgage making it cheaper than it should be at the start and more expensive toward the end. I have a joint policy for two people on ~300k and it is costing 24/month and that was with AIB. It was 19 with 123.ie so you are definitely overpaying.

dah

patbrady877 wrote: »

How much do you pay?
PLEASE LET ME KNOW WHAT YOU ARE PAYING AND WHERE YOU GOT IT SO I CAN COMPARE PROVIDERS

Right I made the big mistake of submitting a few applications for life assurance with a few different brokers, and now they ring me 3 times a day to try and get me to buy from them. The one thing I have noticed is there is a huge difference in price, and I dont know why....

I have a policy at the moment and am looking for a cheaper alternative cos its costing me 120 per month (dont understand why the cost of this hasn't dropped in line with my mortgage repayments!?).

I need 550,000 over 32 years to keep my bank happy,

Hi

With Life Assurance there are so many different products it is hard to compare like to like.

Are you simply looking for Life Assurance to cover the bank or for your family for future security? If for the bank then all you need is mortgage protection and though Brokers will try to sell you 'Level Term' or 'Whole of Life Policy' simply let them know that your looking for the most basic and cheapest cover.

Main difference is
Level Term Policy-
550k will have the same cover in place after year 10, 20, 30 etc until 32 year term has elapsed and in the event of death after e.g 18 years 550k will be paid out. Gives benefit of both covering the Bank and Family cover.

Mortgage Protection
550k cover looks after the bank and cover reduces in line with your mortgage accordingly.
If you die after 18 years and your mortgage is 380k outstanding providing you have made all the repayments, mortgage will be cleared in its entirety of 380k but no extra will be paid out for if there is a partner or children involved.

Whole of Life Assurance
550k is what it says on the tin covered for whole of your llife. Premiums going to be highest due this fact.

Age, health and familly health history all determines monthly premiums and loading may apply in cases. As for you mentioning about premiums going down as per mortgage repayments doesn't work like that. Remember risk of death is still the same no matter what the economic circumstance is and % increase is conditioned on life assurance policies annually.

Mortgage Protection will suffice for all Banks and If you are a single applicant with no children majority of time its not a necessity to have any greater cover in place for your family benefit. Benefit of taking out extra cover when single and no dependents is the premium will be less now, who knows what your health will be in couple of years time you might not get cover and if you wanted to look after your parents they would benefit from this extra cover. But as money is tight for everyone advice should be cheapest premium.

Check out quote on 123.ie they give reduction for year 1. But as always look and shop around every couple of years on Life assurance as circumstances always change.

Anyhow hope all the above helps, I need a job spend too much time on boards hence lenght of post.

juneshaw34

we (me and my husband) changed our life policy 2 months ago.

We were paying 114 per month for 350k of cover for over 28 years (joint life, convert term).

Changed it this year to mortgage protection cover costing 53 per month - serious savings.............

dotsman

juneshaw34 wrote: »

serious savings.............

Not necessarily. AS they are different products, it's like comparing apples and oranges. Mortgage Protection is not "as good" as "life assurance" so will always bee cheaper. Then, depending on the various terms/conditions the 2 products can differ even more!