Life Assurance/Mortgage Protection

dutopia

Hi all. First of all, are Life Assurance and Mortgage Protection essentially the same products? I have to get life assurance as part of my mortgage application and just want to make sure I'm choosing the right product.

Do you have to choose the level of cover to the value of your mortgage? I'd imagine so, but just want to make sure. By choosing that, it would be €30 a month for 35 years... that certainly seems like a lot (2 people, non smokers). Any advice on how to get a cheaper plan?

paulers06

Life assurance pays out a fixed amount whereas Mortgage protection covers mortgage amount remaining only

Myself and my partner are both 29. Our mortgage is €135k over 20 years. Instead of mortgage protection we opted to take out 2 x 20 year life assurance policies worth €200k. If either of us die within the next 20 years then the other will receive €200k minus remaining mortgage. If we both die then 400k minus mortgage

It's costing us €20 pm for the 2 of us and there is an option to take out another policy at the end of the term without being subject to a medical. We went with Life assurance instead of MP as given that we are in our 20's, life cover will never be as cheap as it is now and there is the comfort of being guaranteed a second policy without a medical (next policy will be at rates applicable to 49 year olds)

dutopia

paulers06 wrote: »

Life assurance pays out a fixed amount whereas Mortgage protection covers mortgage amount remaining only

Myself and my partner are both 29. Our mortgage is €135k over 20 years. Instead of mortgage protection we opted to take out 2 x 20 year life assurance policies worth €200k. If either of us die within the next 20 years then the other will receive €200k minus remaining mortgage. If we both die then 400k minus mortgage

It's costing us €20 pm for the 2 of us and there is an option to take out another policy at the end of the term without being subject to a medical. We went with Life assurance instead of MP as given that we are in our 20's, life cover will never be as cheap as it is now and there is the comfort of being guaranteed a second policy without a medical (next policy will be at rates applicable to 49 year olds)

I see, that makes a lot of sense. Thanks for that. I think life assurance is the way to go. Our mortgage will be higher than that so looks like we'll be forking out the €30 pm.

phormium

The terms are fairly interchangeable, lots of policies marketed as mortgage protection also have options for the amount to remain level similar to the life assurance policy mentioned. Level term cover as opposed to decreasing term, convertible options also available on them so choose by the benefits you want and the cost rather than the name on the policy.

Personally I prefer a bog standard decreasing term policy for the mortgage, no frilly bits. If you can afford more take out a separate life policy which you take for whatever amount and term you life with any extra benefits you want.

earlyapex

Try low.ie, a broker. I took out a policy with friends first through them. They had me save over 1800 euro from my previous cover.
With Promotional code FIRU009522

dutopia

earlyapex wrote: »

Try low.ie, a broker. I took out a policy with friends first through them. They had me save over 1800 euro from my previous cover.
With Promotional code FIRU009522

Thanks! Never heard of them before. Looks great!