Life Assurance- Mortgage Top-Up

andymx11

Hello,

I am in the process of drawing down a mortgage top-up to fund an extension.

I was quite surprised that the bank see this as two seperate mortgages even though one is linked to the other!

Leaving that aside, does anybody know whether I can just increase my current life policy by the amount of the top up and thefore have two mortgages (with the same lender) assigned to one policy?

My insurance company think you can and my bank seem to be under the impression that you can't.

ANXIOUS

andymx11 wrote: »

Hello,

I am in the process of drawing down a mortgage top-up to fund an extension.

I was quite surprised that the bank see this as two seperate mortgages even though one is linked to the other!

Leaving that aside, does anybody know whether I can just increase my current life policy by the amount of the top up and thefore have two mortgages (with the same lender) assigned to one policy?

My insurance company think you can and my bank seem to be under the impression that you can't.

Certain policies can, they've the flexibility built in. If your insurance company says they can them it should be fine.

Henry Ford III

Term assurance policies won't be able to be amended.

dozy doctor

We were in a Similar situation Nd apparently the reason they could not combine the amounts is because it would involve solicitors etc...

Aside from that we just changed our life policy from IRISH life to low.ie and are being covered by Royal London, who offer at least €10 off per month compared to Irish Life who were u willing to price match...

ANXIOUS

Henry Ford III wrote: »

Term assurance policies won't be able to be amended.

Term assurance with medical free conversion can be amended at any time.

andymx11

Thanks all, so would the recommendation be to take out a new policy or amend my current one?

I believe the work involved in upping my current cover is similar to taking out a new one !

ANXIOUS

andymx11 wrote: »

Thanks all, so would the recommendation be to take out a new policy or amend my current one?

I believe the work involved in upping my current cover is similar to taking out a new one !

You might have to fill in the same forms, but if you've the conversion option you won't be subjected to the underwriting process.

Henry Ford III

ANXIOUS wrote: »

Term assurance with medical free conversion can be amended at any time.

That'd be convertible term. Some policies can be increased and extended, and others can't.

Henry Ford III

andymx11 wrote: »

Thanks all, so would the recommendation be to take out a new policy or amend my current one?

I believe the work involved in upping my current cover is similar to taking out a new one !

A skilled advisor could sort this out for you in 15 mis.

Leprechaun77

If your health is ok and has not changed since you took out your old policy, you are better off taking out a brand new policy. Compare the cost of maintaining your old policy together with a new one for the top-up amount, and a new policy for the total outstanding. In the current market you may find that a whole new one is cheaper. You also need to consider the term involved if your overall mortgage has been extended.

Most term policies allow for increases in cover without medical evidence on certain life events, of which a new mortgage is one. You will however need a term policy with a conversion option (convertible term/convertible mortgage protection) to extend the term. The premiums on these will not be as cheap however as a brand new one that is underwritten medically.