Mortgage Protection

amacca

Any sage words of wisdom on mortgage protection?

In the process of getting a mortgage and I cant see any reason not to go for cheapest quote (or very close to it) rather than banks tied agent......

the banks tied agent quote seems close to the cheapest quote but with an extra 6ish euro fee on top (for what I'm not sure)

Also any thoughts on illness cover.......is it something that should be considered, I'm thinking of clearing the mortgage off pretty quickly but of course there are no guarantees in life

mimimcmc

Looking to get mortgage protection right now too and finding it fairly confusing

this link has a good bit of info
https://lion.ie/specified-illness-cover/critical-illness-insurance-cover/

good point made on it - don't go with the banks agent as the banks will get the money and not you (in the event...)

woodchuck

I found that lion.ie website very good too.

We've found the whole mortgage protection thing really confusing. I think it's because the very first person we talked too was presenting us with all sorts of options (serious illness cover, bill protection etc) without really explaining anything. She had us running around in a panic and wasting precious time trying to figure out what all our work benefits are (sick pay, death in service etc) so that we could then try and plug the gaps with the necessary cover.

We shopped around for some quotes though and got talking to one guy in particular who was very good at explaining things in plain English. Even though his job is to try and make as much money from us as possible, he advised that we should only go for mortgage protection at this time, as it's all we really need for our present circumstances (no kids, both with secure jobs). We don't really need life insurance right now, because if one of us dies, the mortgage protection will pay off the mortgage and the surviving person can easily handle the remaining bills with one income. He said if we did decide to go for any additional cover (life insurance, serious illness etc) that that could all be done through a separate policy. And that it's preferable to have this separate to your mortgage protection as otherwise the bank gets first dibs on all the money.

I'm not even going to pretend to be an expert myself, but we've decide to go for mortgage protection alone at this time. We might still consider further protection in the future, but we don't want it tied to our mortgage protection.

ChewBerecca

+1 for the lion website in terms of breaking down the jargon

We got a specified illness benefit of 50%, we didn't mind paying extra each month for the peace of mind that if one of us is diagnosed with one of the covered illnesses that half the house would be paid off. With some policies, a death has to occur before they'll pay up - which hopefully will not happen but its all personal preference about how much extra you would like to pay for something that may or may not happen.

One thing to note, the banks will throw their toys out of the pram in if you go with another provider. We had to get a different branch of AIB to witness the assignment form (as we were in a different county at the time) and the mortgage advisor there claimed she didn't know how to fill in the AIB form. Our own AIB mortgage advisor had to call us to tell us that it ended up being filled in incorrectly and had to be redone but she was helpful in the end. Lost a few days coming up to drawdown because of it.

Potatoeman

You get it from a different broker than your bank so you have the option to transfer the mortgage to another bank if needs be.

Go for the basic option, I know someone that got the illness cover and it would not payout as a they said it was a pre existing condition (it wasn’t). Waste of money they’ll look for anyway to reject a claim.

woodchuck

Potatoeman wrote: »

You get it from a different broker than your bank so you have the option to transfer the mortgage to another bank if needs be.

Yeah we actually heard that having mortgage protection with your bank can cause issues down the line if/when you want to switch mortgage provider. We didn't find anything concrete on this though if anyone has any further information? We're getting cheaper quotes from other crowds that aren't associated with our bank anyway though, so it just makes sense that we get it elsewhere.

Just to note on the serious illness protection, my (very limited) understanding is that it just pays out in advance of your death. All of the illnesses they list are so serious, that you'd expect to be terminal. So they just pay off the mortgage early if you get me? I.e. they'll pay it out when you're diagnosed as opposed to waiting until you actually die. Obviously that's useful if you're out of work for a chunk of time before your death, but it's no good for other illnesses that won't kill you, but mean you're unable to work long-term. What you really want to look into there is bill cover or income protection. [again, all based on my very limited understanding from the recent research we've done and advice sought and I am very much open to correction!]

BronsonTB

+1 for the lion website


Very easy deal with & excellent service.

Xcellor

When I took out mortgage it was mandatory, it was never explained that this insurance was available elsewhere, being young and dumb I took out mortgage cover and specified illness, it wasn't until many years later that I understood that even if I had of become ill, the illness benefit would have been paid out to the bank rather than myself (probably offset against the remaining balance). When I found out this I cancelled the illness part and took out a separate policy.

I now maintain a policy just to clear the mortgage if I die and another for serious illness and life cover for my wife and I.

Zurich apparently have the best serious illness cover in terms of conditions covered...

Its one of these things I really wouldn't like to ever claim on tbh.

woodchuck

Xcellor wrote: »

When I took out mortgage it was mandatory, it was never explained that this insurance was available elsewhere, being young and dumb I took out mortgage cover and specified illness, it wasn't until many years later that I understood that even if I had of become ill, the illness benefit would have been paid out to the bank rather than myself (probably offset against the remaining balance). When I found out this I cancelled the illness part and took out a separate policy.

Yes, that's my understanding too. That it's just the mortgage protection being paid out early - i.e. you don't actually get any cash in hand, it just pays off your loan to the bank.

Potatoeman

woodchuck wrote: »

Yeah we actually heard that having mortgage protection with your bank can cause issues down the line if/when you want to switch mortgage provider. We didn't find anything concrete on this though if anyone has any further information? We're getting cheaper quotes from other crowds that aren't associated with our bank anyway though, so it just makes sense that we get it elsewhere.

Just to note on the serious illness protection, my (very limited) understanding is that it just pays out in advance of your death. All of the illnesses they list are so serious, that you'd expect to be terminal. So they just pay off the mortgage early if you get me? I.e. they'll pay it out when you're diagnosed as opposed to waiting until you actually die. Obviously that's useful if you're out of work for a chunk of time before your death, but it's no good for other illnesses that won't kill you, but mean you're unable to work long-term. What you really want to look into there is bill cover or income protection. [again, all based on my very limited understanding from the recent research we've done and advice sought and I am very much open to correction!]

I know someone that was diagnosed with MS and they were rejected as ten years previously they were in hospital for an unrelated issue but as the symptoms were similar so it was considered a pre existing condition. I heard this kind of thing before for these policies.

woodchuck

Potatoeman wrote: »

I know someone that was diagnosed with MS and they were rejected as ten years previously they were in hospital for an unrelated issue but as the symptoms were similar so it was considered a pre existing condition. I heard this kind of thing before for these policies.

It doesn't surprise me in the slightest. Any excuse not to pay out These things are supposed to give you peace of mind, but it's a lot of money to pay out monthly that you might never need or if you do need it, there'll be a loop hole so you don't get the advantage of it.

ebayissues

Having read up, I'm still no closer to choosing what I need?


House Building Insurance - Sorted
Mortgage insurance/Level term cover/mortgage protction?
Income protection?
Serious illnes cover?
Funeral & Bill cover??

Most of the above is with Alliaz one protection plan costing me arround 90e a month. Surely not all are needed.

brisan

ebayissues wrote: »

Having read up, I'm still no closer to choosing what I need?


House Building Insurance - Sorted
Mortgage insurance/Level term cover/mortgage protction?
Income protection?
Serious illnes cover?
Funeral & Bill cover??

Most of the above is with Alliaz one protection plan costing me arround 90e a month. Surely not all are needed.

Are contents included in Building insurance

Geuze

ebayissues wrote: »

Having read up, I'm still no closer to choosing what I need?


House Building Insurance - Sorted
Mortgage insurance/Level term cover/mortgage protction?
Income protection?
Serious illnes cover?
Funeral & Bill cover??

Most of the above is with Alliaz one protection plan costing me arround 90e a month. Surely not all are needed.

In terms of buying s house and getting a mortgage, the two required insurances are:

(1) House insurance
(2) Mortgage protection policy - this is a life insurance policy assigned to the bank lender that repays the debt if you die


I paid 100 pa for my first MPP, single life, 20yr term.

Get a quick quote on www.labrokers.ie

Geuze

brisan wrote: »

Are contents included in Building insurance

House insurance consists of:

building + contents + options like specific item (e.g. jewels)


It is possible to buy contents only, a tenant would buy that.

brisan

Geuze wrote: »

House insurance consists of:

building + contents + options like specific item (e.g. jewels)


It is possible to buy contents only, a tenant would buy that.

I know that
But I was asking did the OP get building insurance ,or did he get buildings and contents
I have heard of people not getting contents insurance because the banks did not insist on it

alicantra123

Hi all,

Sorry to jump on board here, just wondering if anyone had advice around seeking mortgage protection if you have a recent diagnosis. I was diagnosed with lupus 4 months ago and it is well managed with medication. Royal London have refused me as they have blanket ban on anyone with any diagnosis in past 12 months (apparently due to covid). Was due to sign contracts tomorrow and now whole house purchase is in jeopardy as I don't know will I able to be covered. Anyone know of anywhere that they have had luck with this?

Henry Ford III

Would this thread be better served in the Banking, Insurance, and Pensions forum?

Islander13

alicantra123 wrote: »

Hi all,

Sorry to jump on board here, just wondering if anyone had advice around seeking mortgage protection if you have a recent diagnosis. I was diagnosed with lupus 4 months ago and it is well managed with medication. Royal London have refused me as they have blanket ban on anyone with any diagnosis in past 12 months (apparently due to covid). Was due to sign contracts tomorrow and now whole house purchase is in jeopardy as I don't know will I able to be covered. Anyone know of anywhere that they have had luck with this?

I'm pretty certain that banks dont insist on it where the cost of same is prohibative due to medical issues. Same applies where the applicant for a mortgage is over a certain age threshold.

Ring your bank/broker and ask. Each may have slightly different rules

luketitz

Lion.ie are definitely the folk to speak to if you've had a recent diagnosis, my sister recently got shot down by a few places following an MS diagnosis and Nick from Lion had her covered within a day or two of filling in the form on his site, unbelievable service from a sound Irish broker who more people should really know about I feel (no affiliation, just a grateful admirer)

into_the_wild

Just wondering, Can one switch their mortgage protection policy every year for free or are there any fees/charges in doing so?

Vikings

into_the_wild wrote: »

Just wondering, Can one switch their mortgage protection policy every year for free or are there any fees/charges in doing so?

For what reason? Generally mortgage protection policies get more expensive the older you get.

into_the_wild

Vikings wrote: »

For what reason? Generally mortgage protection policies get more expensive the older you get.

True but won't the premium reduce since the leftover mortgage at that time will be lesser than what it is now?
Just wondering if people do this or not.

Geuze

into_the_wild wrote: »

Just wondering, Can one switch their mortgage protection policy every year for free or are there any fees/charges in doing so?

Yes, you can.

To do so very often would involve a lot of hassle.

Geuze

into_the_wild wrote: »

True but won't the premium reduce since the leftover mortgage at that time will be lesser than what it is now?
Just wondering if people do this or not.

A guy I know is doing the following:

(1) buying MPP from the lender, as this is easier, don't have to assign other policy to lender, reduces risks of delays in mortgage process

(2) later, cancel that MPP, and buy the cheapest MPP, when you have time to deal with assigning the MPP to the lender

bobbyy gee

Will it cover covid illness you could be off work for 30 days

Geuze

bobbyy gee wrote: »

Will it cover covid illness you could be off work for 30 days

A MPP pays out if you die.

It repays the mortgage if you die.

gogo

With a mortgage you only have to take out basic mortgage protection, you can take it with reducing cover as in the value of it reduces in line with the mortgage, you owe 100k, policy cover 100k.
People saying the cash goes to the bank annoys them have completely missed the point of why they are taking it out... it’s to pay back the mortgage in case you or your partner die so of course it gets paid to the bank - that’s the whole point of it .
You can set cover as in 250k life cover, mortgage is 100k and if you die your estate gets the balance if 150k after the bank gets there 100k - this is obviously slightly more expensive that reducing cover.

Taking out critical illness is entirely optional, are you paid when your out sick from work? Do you have savings that you won’t need/emergency money stashed somewhere. You need to understand your own finances and if you would have funds/means to live should you get cancer or a serious illness.

Going with a broker over a bank is much of a much mess, assuming your in good health with a good family history of health, basic mortgage protection is very cheap. One benefit of going with a bank I found is that the policy didn’t kick in until drawdown (life company & bank communication/work together) where as if going with a broker you have to have the policy in place before drawdown - grand if it’s straight forward but a pain in there are any delays.

As with all insurance you can insure yourself until the cows come home, in reality all you need is basis cover, if you have family, kids etc etc you should really look at your over all picture and try make sure your family are catered for should you die.

The consumer credit act states that if insurance is prohibitively expensive because of ill health or age, the condition can be waived... most banks won’t agree to this, especially if a person is the main earner in a household, you can try make a case, but if they feel it’s too risky they don’t have to agree to it, all banks would have there own policy on waiving life cover.. and it’s a slim policy for not having it.

With home insurance you don’t need contents cover, again you should have it... all grand until the tv falls over when your have a dance off with your friends on a Saturday night.

Boggles me that people are so anti insurance, a quick google search shows 98% of all life assurance policies in ireland are paid out on.. nonsense above about looking for a reason not to pay 🙄

Most companies will pay out, don’t lie on your application, if you smoke, it will cost you twice as much, but lie about it and you won’t get your pay out.

Johnkl68

All I need help..my partner flew through the mortgage application..has a good job good salary and we decided it best that she go alone as I'm older 54 and she's 50 so would have a 19 year mortgage and plus she's a 1st time buyer.. plus im off work due to covid ..anyway it came to mortgage protection and it's been nothing but decline..she has type 2 controlled diabiates and kidney disease..we are now in trouble as we can't get any cover..the bank is willing to accept any kind of cover even half the value so looking for cover for maybe 50 to 70,000 ...please

alicantra123

Johnkl98,

I contacted Nick at Lion insurance brokers off the back of recommendations in this thread and he was absolutely fantastic. I have recent diagnosis of lupus and was being turned down left right and centre, he managed to get me covered with one of the places who originally turned me down. He seems to really know his stuff in terms of illnesses and must be able to present a case well. He was also unbelievably efficient and professional. I'd definitely give him a shout.

Thank you also to everyone for recommending, I literally went from losing house of my dreams to signing contracts this week. Thank you!

gogo

Johnkl68 wrote: »

All I need help..my partner flew through the mortgage application..has a good job good salary and we decided it best that she go alone as I'm older 54 and she's 50 so would have a 19 year mortgage and plus she's a 1st time buyer.. plus im off work due to covid ..anyway it came to mortgage protection and it's been nothing but decline..she has type 2 controlled diabiates and kidney disease..we are now in trouble as we can't get any cover..the bank is willing to accept any kind of cover even half the value so looking for cover for maybe 50 to 70,000 ...please

Has she actually been declined insurance, most companies are only postponing cover for diabetics? Therein lies the problem, if she has actually being declined she can seek a waiver from the bank under the consumer credit act, which states that if insurance has been declined or is prohibitively expensive they can issue a waiver, saying that most banks have their own policy which is that they want cover, but it is an option to try.. but she has to be declined not postponed. Massive issues for diabetics getting cover since covid as insurance companies have now categorized them as higher risk than prior to covid..

phormium

I don't think the waiver has to be just for declined v postponed, I have seen waivers offered in the past for postponements, specifically in the case of a melanoma case where they postponed for 5 yrs to ensure a full all clear.

Either way being over 50 is another reason a waiver can be given, assuming of course that the particular bank is happy to run with a waiver anyway, not all are.

Here are the actual reasons, it just states ' a person who would not be acceptable to an insurer', surely that covers postponement as they are not acceptable at the point in time of the mortgage drawdown.

(a) where the house in respect of which the loan is made is, in the mortgage lender’s opinion, not intended for use as the principal residence of the borrower or of his dependants,

(b) loans to persons who belong to a class of persons which would not be acceptable to an insurer, or which would only be acceptable to an insurer at a premium significantly higher than that payable by borrowers generally,

(c) loans to persons who are over 50 years of age at the time the loan is approved,

(d) loans to persons who, at the time the loan is made, have otherwise arranged life assurance, providing for payment of a sum, in the event of death, of not less than the sum referred to in subsection (1).

gogo

Personally never seen it waived for a postponement, always a case of ‘come back when you can get it’ that’s not to say they won’t just personal experience, at least it’s another option for her to try

Johnkl68

She is over 50 too..is that law or again at the banks discretion.. I mean she flew threw everything cant get mortgage protection but bank are saying she has to find cover ?? Thanks for all your input

phormium

Bank's discretion and based on their own policies, the 4 opt out reasons are the ones a bank can use to justify a waiver as the CCA requires them to ensure a policy is in place.

Has she actually asked them for a waiver based on the postponement and been refused that? Some banks are more open to them than others.

Pete123456

To resurrect an avenging thread, does anybody have experience with getting mortgage protection where a parent had colon cancer 3 years ago and has been clear since?

Will ring a few insurers tomorrow, just looking for an idea of how much (if any) hassle it’s going to cause.

They were over 50 at the time if that makes any difference? Is it just going to mean an increased premium or do they look for tons of medical info - would not be on excellent terms with the same parent so getting info will be difficult I reckon.

phormium

My experience is a bit old at this stage but I had no problem getting life cover with a parent who had died from cancer in early 50s. One company were adding a loading so I went with a different one that gave normal rates. There was not tons of info asked for just the basic details as to cancer type.

I'd be more inclined to just go to a broker, I know at the time the broker I used knew which companies were best to try, not all take the same view and load for all the same illnesses, depends on the view their actuaries/underwriters take.

Hairdo

Hi all, I wonder can anyone here help me.

My partner and I are getting a mortgage and the bank arranged a meeting with their mortgage protection team.When I asked the lady if the policy is transferable if we switch mortgage provider she said the following.(below). I have looked for this €320k+ rule online and cannot find it anywhere. I'm wondering if anyone can verify if you cannot switch mortgage protection if your mortgage is over €320k. Is this the case with any plan? Or am I misunderstanding her response?

"As your mortgage is over 320k this would mean that any plan you take out will be assigned to [BANK] so your mortgage with [BANK]would have to be cleared before you could move the policy as [BANK] would be the owner of the policy. But this would be the same with any plan you take out when your mortgage is over 320k