Life insurance and mortgage

adne

Hi,

My employer provides a life insurance policy as part of my benefits, would this policy also suffice to cover the life assurance that my mortgage provider requires is in place?

Thanks,
Adne

phormium

Not normally as usually that policy cannot be assigned to the bank.

adne

phormium wrote: »

Not normally as usually that policy cannot be assigned to the bank.

Ok thanks thought this would be the case so looks like need to take out a new policy

Trish56

No as the policy has to be for the amount of mortgage and term. You need to take out a separate mortgage protection policy. You can shop around for the best price rather than take out a policy with the lender which is normally dearer.

coylemj

The policy provided by your employer is intended to look after any dependants you may have if you die while in service. A mortgage protection policy is designed solely to pay off the mortgage, it is a policy which serves no other purpose than to look after the interests of the lender who gave you your mortgage. So there is no overlap between the two types of policy and you need both.

adne

coylemj wrote: »

The policy provided by your employer is intended to look after any dependants you may have if you die while in service. A mortgage protection policy is designed solely to pay off the mortgage, it is a policy which serves no other purpose than to look after the interests of the lender who gave you your mortgage. So there is no overlap between the two types of policy and you need both.

The mortgages provider is always protected in our capital society :eek:

slystallone

https://www.boards.ie/discussion/comment/85144238#Comment_85144238

The CCPC says they might accept life insurance:

https://www.boards.ie/discussion/comment/118408906#Comment_118408906

A death in service benefit provided by your employer is not a life assurance policy though.