Adding wife to Mortgage protection

I originally bought my house alone and as normal took a policy out but after 10 years marriage I have only just realised that my wife isn't in the policy and with 3 kids, I works be fairly stuck trying to pay a mortgage and raise them.

So, can I add her to the mortgage protection without adding to the actual mortgage? My mortgage was bought out by a finance company (not in arrears the bank left Ireland) so they won't generally allow any changes in the mortgage, even moving house they won't remortgage.

Jim2007

Niner leprauchan wrote: »

I originally bought my house alone and as normal took a policy out but after 10 years marriage I have only just realised that my wife isn't in the policy and with 3 kids, I works be fairly stuck trying to pay a mortgage and raise them.

So, can I add her to the mortgage protection without adding to the actual mortgage? My mortgage was bought out by a finance company (not in arrears the bank left Ireland) so they won't generally allow any changes in the mortgage, even moving house they won't remortgage.

Probably not and I'm sure it would make much sense even if you did... The objective of the insurance is to pay a debt that will crystallize on your death, not hers. So even if she did die, your debt would not crystallize and the policy would not kick in.


I suspect what you need is some kind of policy that would kick in in a situation where your wife became incapacitated or died and you needed assistance in bring up the family.


In the even of no one else coming up with an idea, I'd suggest you talk to a broker and see what they can come up with.

silver2020

Just take out a standard life policy in her name.

35years old, non smoker - a €200,000 life insurance policy for 20 years would cost €15/month with Laya

phormium

Exactly as above, just take out a new standalone policy on her.

amdublin

Jim2007 wrote: »

Probably not and I'm sure it would make much sense even if you did... The objective of the insurance is to pay a debt that will crystallize on your death, not hers. So even if she did die, your debt would not crystallize and the policy would not kick in.


I suspect what you need is some kind of policy that would kick in in a situation where your wife became incapacitated or died and you needed assistance in bring up the family.


In the even of no one else coming up with an idea, I'd suggest you talk to a broker and see what they can come up with.

The debt is still there if his wife dies. The OP may need to stop working in order to mind his children. Or maybe instead hire a nanny. Or maybe his wife works currently and that source of income is gone if she dies.

What I am saying is there is a financial loss in the event of her death. Which would impact the payment of the mortgage and other things.

OP it is a very good question. You and your wife definitely need to take out some life cover/a life insurance policy for your wife.

coylemj

Niner leprauchan wrote: »

So, can I add her to the mortgage protection without adding to the actual mortgage?

You have the option to drop the existing policy and take out a new one on a joint-life basis. The premium will be higher but would clear the mortgage if either of you died.

But as already advised, you have the option to take out a separate policy to cover her life. This may make more sense as you will probably be able to continue to pay the mortgage repayements if she died but (as you implied), you would need financial assistance to help rearing the three kids

Cheers lads, we have a joint life assurance policy that pays out if she died but I guess I will need to up it.