Life Life Insurance Premiums

I have a life insurance policy for myself and my wife with Bank of Ireland. Its linked to a mortgage. could I if i wanted shop around next year for a better priced premium if needed, would I be loosing anything with regards to my policy wiht BOI

Depends on the type of policy. You may have a whole of life policy with BOI (personally I think these types of policies are unsuitable for mortgage protection but thats another story), where as a cheaper mortgage protection plan would only be for the term of the policy and the benefits would decrease in line with the mortgage rather than maybe staying constant.

Without knowing exactly what type of BOI plan you have its impossible for me to totally answer your question. However, I have found BOI to be rather expensive in the past and you should be able to find a comparable policy elsewhere cheaper. Its worth shopping around and I advise you to talk to an independent advisor, not just someone who wants to sell you their product but someone who can compare the market prices for you and advise the cheapest price they can get you for the cover you require.

Hope this helps.


www.CheaperLifeAssurance.ie

StevieC said:

However, I have found BOI to be rather expensive in the past and you should be able to find a comparable policy elsewhere cheaper.

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A friend of mine had their basic/reducing term mortgage protection life insurance policy and mortgage from BoI, shopped around and switched but the cheapest alternative on offer was more or less the same price albeit with the first year refunded.

tred said:

I have a life insurance policy for myself and my wife with Bank of Ireland. Its linked to a mortgage. could I if i wanted shop around next year for a better priced premium if needed, would I be loosing anything with regards to my policy wiht BOI

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You wouldn't be losing anything but you would be gaining the big advantage of having a independent mortgage protection policy.

An independent policy will continue to run even if you clear the mortgage. This is especially important if you have had health issues so wish to have your policy continue at normal rates. A mortgage protection policy issued by the lender will cease once the mortgage ends.

You can also transfer an independent policy to a new lender if you switch mortgages in the future. You cannot do this with a policy issued by your lender.

Sometimes it's better to focus on benefits over price.

ClubMan said:

A friend of mine had their basic/reducing term mortgage protection life insurance policy and mortgage from BoI, shopped around and switched but the cheapest alternative on offer was more or less the same price albeit with the first year refunded.

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That may be true Clubman as all quotes are person specific and a company cheap for one person may not be cheap for another depending on age/smoker status etc. However, a large number of ex-BOI clients who have contacted me looking for quotes were sold expensive Lifecare products for mortgage protection purposes.

Many of these people realise now that they dont want an expensive whole of life policy when all they really need is a basic term related product.

Regardless its still worth contacting someone independent as all large institutions want to do is sell you their own product regardless of how it compares to the market.


www.CheaperLifeAssurance.ie

NorfBank said:

You wouldn't be losing anything but you would be gaining the big advantage of having a independent mortgage protection policy.

An independent policy will continue to run even if you clear the mortgage. This is especially important if you have had health issues so wish to have your policy continue at normal rates. A mortgage protection policy issued by the lender will cease once the mortgage ends.

You can also transfer an independent policy to a new lender if you switch mortgages in the future. You cannot do this with a policy issued by your lender.

Sometimes it's better to focus on benefits over price.

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So true.

NorfBank said:

You can also transfer an independent policy to a new lender if you switch mortgages in the future. You cannot do this with a policy issued by your lender.

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That's a very broad sweaping statement NorfBank!

I think that NorfBank is referring to Block Mortgage Protection, this is a group policy that is administered by the mortgage company. These policies were popular before the celtic tiger but most banks (but not all) moved away from this type of policy as you could not transfer the policy to a new mortgage.

Most banks now issue independant mortgage protection policies which are owned by the life assured and are then assigned to the mortgage/loan