Mortgage protection insurance with DCC loan

jc11

Hi there,

We are applying for a loan through DCC and I just noticed that mortgage protection insurance is added into the monthly repayments as a % of the loan amount.

I'm just wondering, if this is the case, do they just automatically do this or would we need to be underwritten?

The % seems to be set so I can't see what would happen if it would need to be loaded?

Anyone any info on this?

Many thanks

Pablo Sanchez

Is this your life assurance or mortgage protection (payment protection)?

Sounds like you are being quoted for being part of their group scheme, limited or no underwriting might apply in that case.

jc11

its for Mortgage protection insurance.

Thanks for reply, just what I was hoping for!

bailes

The quote is an assumption.

You are not compelled to take the insurance out with them you are better off talking to an Insurance Broker to get the best deal

jc11

Its a home choice loan (mortgage) with Dublin City Council.

I think if we were approved for this we have no choice to go with their Mortgage Protection insurance, we wont be able to shop around.

Im just wondering if we would need to be underwritten for this as it states on the form that it will be a % of the loan which will be added onto monthly mortgage repayment.

Pablo Sanchez

jc11 wrote: »

Its a home choice loan (mortgage) with Dublin City Council.

I think if we were approved for this we have no choice to go with their Mortgage Protection insurance, we wont be able to shop around.

Im just wondering if we would need to be underwritten for this as it states on the form that it will be a % of the loan which will be added onto monthly mortgage repayment.

Normally with these group schemes you will be automatically accepted if you are able to answer 'no' to a small selection of health related questions. So tecnically there might be a few questions but its practically nothing compared to what you may have to do to get an individual policy.

bailes

Can i say best of Luck with the Home Choice Loan application,they recently produced results showing that collectively the Home Choice Loan department had issued c€10m in loans in 2009/10 and so far it cost c.€2m to set it up and staff it. (only in Ireland)

anyway my point is the conversion ratio of applications to issued loans is very poor but hopefully you are in the minority.

If i have it right you are looking at info giving you a quote for Mortgage protection/ Life Insurance rather than Mortgage repayment protection which covers your repayment in the event of Illness o loss of job.

The Motgage protection/Life cover is standard enough and should it be part of a group scheme it may work out cheaper but i would still suggest getting a quote from an Independent Financial Adviser as their options to every policy that you may wish to avail of and it could well be cheaper.

Irrespective of all of the above best of luck with the mortgage.

broker2008

It is a number of years since I did one of these but I do seem to recall that the admin costs were really high to administer.