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Life insurance on rental property mortgage

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  • 04-02-2015 3:42pm
    #1
    draiochtanois
    Registered Users Posts: 2,655 ✭✭✭


    This post has been deleted.


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    #2
    draiochtanois
    Registered Users Posts: 2,655 ✭✭✭draiochtanois


    This post has been deleted.


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    #3
    um7y1h83ge06nx
    Closed Accounts Posts: 5,029 ✭✭✭um7y1h83ge06nx


    As the owner? I presume you have to as requirement by the bank regardless of whether you live in the property or not. They want their money in case you die.


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    #4
    draiochtanois
    Registered Users Posts: 2,655 ✭✭✭draiochtanois


    This post has been deleted.


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    #5
    The_Morrigan
    Moderators Posts: 9,368 ✭✭✭The_Morrigan


    draiochtanois wrote: »
    This post has been deleted.

    That isn't how it works - talk to your bank regarding their requirements.


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    #6
    Hannibal Smith
    Closed Accounts Posts: 3,893 ✭✭✭Hannibal Smith


    You used to be able to waive the requirement for a mortgage protection policy on an investment property mortgage, not sure if you still can? But I always thought it made sense to have one.


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    #7
    The_Morrigan
    Moderators Posts: 9,368 ✭✭✭The_Morrigan


    Hannibal Smith wrote: »
    You used to be able to waive the requirement for a mortgage protection policy on an investment property mortgage, not sure if you still can? But I always thought it made sense to have one.

    Mortgage protection is different to an assurance policy though. Both are a good idea.


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    #8
    Mrs OBumble
    Registered Users Posts: 25,693 ✭✭✭✭Mrs OBumble


    draiochtanois wrote: »
    This post has been deleted.

    Yes.

    But not from the bank's perspective: they want to maximise the interest you pay over the life of the loan.


    Whether it's needed or not depends on the mortgage provider's rules. I was allowed to do without it (on my own home, not even a rental property) because of the size of deposit I had - and because I did the sums about various interest scenarios and what would happen if I got sick and couldn't work.

    With a rental property, provide the rent easily covers the mortgage, the bank may not require it. Only they know their rules.


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    #9
    The_Morrigan
    Moderators Posts: 9,368 ✭✭✭The_Morrigan


    Hold on a minute, OP are you talking about a life assurance policy which pays out on death or are you talking about a payment protection policy that pays out if unemployed or sick?
    They are not the same thing and going by some of the comments above people are interchanging the concepts.


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    #10
    draiochtanois
    Registered Users Posts: 2,655 ✭✭✭draiochtanois


    This post has been deleted.


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    #11
    beatlesfan3333
    Registered Users Posts: 79 ✭✭beatlesfan3333


    As far as I know, it's a requirement by the banks. If you have a mortgage, you have to have life assurance. That's what I've heard anyway :)


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    #12
    April 73
    Registered Users Posts: 846 ✭✭✭April 73


    Certainly in the past it has been possible to have an investment property without a life assurance policy.
    I can't state for a fact that that is still the case nowadays - it may depend on the bank in question but I would imagine the same situation exists.

    In fact it is also possible to have a mortgage on a PPR with the requirement for life assurance to be waived if three companies have turned you down for life assurance. Again it would depend on the bank in question & your circumstances.


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    #13
    farrerg
    Registered Users Posts: 133 ✭✭farrerg


    Hannibal Smith wrote: »
    You used to be able to waive the requirement for a mortgage protection policy on an investment property mortgage, not sure if you still can? But I always thought it made sense to have one.

    I think they would only do it in exceptional circumstances i.e. where previous illness made the cost prohibitively high. It's probably case by case but I doubt they'd waive it easily


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    #14
    April 73
    Registered Users Posts: 846 ✭✭✭April 73


    farrerg wrote: »
    I think they would only do it in exceptional circumstances i.e. where previous illness made the cost prohibitively high. It's probably case by case but I doubt they'd waive it easily

    I don't think on an investment property it has to be in exceptional circumstances or where illness affects the policy cost. I've had it waived by different banks with no difficulty & without any exceptional circumstances.

    A PPR is a different proposition of course.


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    #15
    MouseTail
    Registered Users Posts: 1,663 ✭✭✭MouseTail


    Agree with April, its not a necessity on investment properties, as to whether its useful, that depends on your estate planning. Are your dependents suitably provided for if the property is sold and the proceeds used to pay the mortgage, or do you want the property mortgage free to form part of your estate?


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