Over insured ?

OU812

Looking at policies as they're up for renewal:

House insurance (buildings & contents) = €182,000 & €50,000
Mortgage Protection Insurance = €215,000
Life Insurance = €350,000

Now, Obviously the bank won't issue a mortgage unless there's mortgage protection in place, but the life insurance would more than clear the mortgage, so why do I have to spend an additional €450+ a year for the next 20 odd years?

Do I have any options here?

coylemj

OU812 wrote: »

Now, Obviously the bank won't issue a mortgage unless there's mortgage protection in place, but the life insurance would more than clear the mortgage, so why do I have to spend an additional €450+ a year for the next 20 odd years?

Because you have made the choice that should you die, there will be a large lump sum as well as the mortgage getting paid off.

The mortgage protection policy is assignable to the lending institution and protects their interests. On the other hand nobody is forcing you to have that life policy so it's not the bank's fault that you chose to pay the premiums.

phormium

Exactly as above, you could of course cancel the mortgage protection and assign your other policy to the bank. But somewhere along the line you obviously made a decision that you should have a lump sum of 350k available if you die.