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Changing life insurance

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  • 09-03-2011 12:03pm
    #1
    amytomjerry
    Registered Users Posts: 88 ✭✭


    My life insurance was set up with Irish Life through Ulster bank for 65euro a month a few years ago. I wish to reduce this amount now as its too dear and get cover basically to cover the mortgage which now stands at 105,000euro.

    Is it possible to simply cancel this cover and shop around for a new policy? I rang the bank and they are offering a new policy for 32euro...

    It this a reasonable quote? Thank you...


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    #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,654 Mod ✭✭✭✭Henry Ford III


    It may be and may not be. Shop around.

    You'll need to get the other cover in place before the lender will release the earlier policy.


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    #3
    outeverynite
    Registered Users Posts: 18 ✭outeverynite


    I'm just after changing my mortgage protection (life insurance) for my mortgage. I shopped around for it and got a good online quote with LAbrokers.ie. I got just the basic cover for the amount outstanding on mortgage. The first year the give you a discount. I paid €32 for the first year and will pay €139 every following year til mortgage is finished.

    You do have to have your new cover in place before you cancel your mortgage protection. Once LAbrokers had received my payment for first year they sorted out the documentation which I got sent to myself. Then I brought in my original docs to my bank and signed a deed of assignment which they have now sent onto their cover dept as these docs will have to be with your House Deeds.


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    #4
    coylemj
    Registered Users Posts: 25,361 ✭✭✭✭coylemj


    outeverynite wrote: »
    You do have to have your new cover in place before you cancel your mortgage protection.

    I wouldn't worry too much about this as there are days of grace with life assurance, just get the new insurance to start on a given date and then stop paying the old policy on the same date, sort out the paperwork afterwards. The company with whom you had the old policy will write to the lender telling them the policy has been cancelled but by the time they get around to doing this you should have already notified the lender of the details of the new policy and had it assigned to them so they will be happy.

    At the end of the day there isn't much the lender can do if it later turns out that there was a gap of a couple of days in cover.


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