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mortgage life insurance

  • 10-08-2019 4:34pm
    #1
    onthelook
    Registered Users, Registered Users 2 Posts: 18 ✭


    As part of taking mortgage I was asked to take life insurance. At the moment I'm on LTV<50% for the next 15 years. I do expect to pay it off in next 6-7 years and I'm on the variable rate and pay about 800 euro extra each month. Anyway my life insurance is about 100 euro a month. Can I cancel this life insurance as I would rather use that money towards health insurance (don't really need money when I'm dead). Can I do that and would AIB find out if I cancel life insurance?

    Thanks


Comments

  • #2
    Geuze
    Registered Users, Registered Users 2 Posts: 14,026 ✭✭✭✭Geuze


    No, you should not cancel it, and yes the lender will find out.

    100 pm is a very high premium, maybe you have health issues?

    I used to pay 100 pa.

    I now pay less than 300 pa for a 200k mortgage.

    You should shop around for a cheaper policy.

    Try www.labrokers.ie

    Once you get a cheaper policy, then cancel the older, dearer policy.


  • #3
    jimbobaloobob
    Registered Users, Registered Users 2 Posts: 5,153 ✭✭✭jimbobaloobob


    Geuze wrote: »
    No, you should not cancel it, and yes the lender will find out.

    100 pm is a very high premium, maybe you have health issues?

    I used to pay 100 pa.

    I now pay less than 300 pa for a 200k mortgage.

    You should shop around for a cheaper policy.

    Try www.labrokers.ie

    Once you get a cheaper policy, then cancel the older, dearer policy.

    Surely it's dependent on the payout value of the policy? What about sick cover? It's more likely that you would become sick is that built into the policy? If so that would add to the cost.
    I pay €50 month life cover including illness


  • #4
    bee06
    Registered Users, Registered Users 2 Posts: 4,514 ✭✭✭bee06


    You won’t need the money when you’re dead but do you have dependants who would need it if you got hit by a bus tomorrow?

    100 Euro a month does seem expensive though (assuming you are in good health). Does it include a critical illness part? In my experience that costs more than the life assurance but and isn’t a requirement for the bank.


  • #5
    Sunrise_Sunset
    Registered Users, Registered Users 2 Posts: 1,215 ✭✭✭Sunrise_Sunset


    I agree, the cost sounds more consistent with having serious illness cover included.
    Find out what cover you have, and reduce it if you'd prefer. The lowest cover you can get is a decreasing mortgage protection plan. I was quoted about 27 euros per month recently. I decided to go with a better plan as I have dependants.


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