do i have to get life assurance with mortgage

im 57 just got mortgage approved but have no life assurance , bank says my wife and i need life assurance to get loan, thats fair enough but we have plenty of assets and property to cover mortgage amount in case we default we could sell an asset but not going to happen as we hope to pay mortgage off in 5 year,and the bank hold all these deeds. bank says it is a government regulation that the family home has to be protected and taking out life assurance is the best way of doing this. is this true or is bank trying to get extra out of us by getting us to take it out. it comes to 300 euro a month so its a lot on top of a mortgage

Yes everyone needs life assurances with a mortgage its the law to have it and if one of you die before the mortgage is payed of the bank clear the mortgage for you.

Hi oaky9,

In Ireland it is mandatory when taking out a mortgage to purchase insurance. However, unless your loan is interest only you are not obliged to take out a life assurance policy but may instead avail of a decreasing term policy known as mortgage protection.

Also, you are not obliged to purchase your bank's product. Shop around. Too often rates offered by the lender are not competitive.

Regards,

Did you not like the answers you got to the question in the Mortgages forum?

And how come you've transmuted from concerned offspring gonna give those banks what for to purchaser of family home?

Ummmmm.

mf

Nestegg - you are wrong you do need to take out a mortgage protection policy with an interest only loan it's just a different type - its called level term mortgage protection.

By law you need to take out mortgage protection if you are 50 or younger but if you are 50 or over you can waive this cover by signing a mortgage protection waiver. In some cases the bank may insist on taking out the cover.

thanks for your answers everyone. one other quick question my parents took out a large loand for 880000 euro 4 year ago and one of the conditions was my brother and i take out life cover for 440000 each as security, the loan is now paid off and we still pay the life cover so if one of us die who gets the 440000 or is it a waste of time to still pay this.

Stephenkelly said:

Nestegg - you are wrong you do need to take out a mortgage protection policy with an interest only loan it's just a different type - its called level term mortgage protection.

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Apologies,
By 'life assurance' I inferred level term assurance which, judging by the monthly premium of €300, appeared to be the product offered by oaky9s bank.

Stephenkelly said:

By law you need to take out mortgage protection if you are 50 or younger but if you are 50 or over you can waive this cover

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This is correct and is provided for under the Consumer Credit Act, 1995: 126;2;c. Also worth noting oaky9 is CCA, 1995: 127;1 which provides that the lenders offer of loan may not be subject to the provision by that lender of any other financial service.

This thread is essentially a duplicate of another started by the OP (as mf1 has pointed out).

Thread locked.