Life Changing - Cancelling/Changing

[yop]

Hi
Have a mortgage which is now 40% of what it was when I started 15 yrs ago. But the cost of the life cover (for 2) is 31 euros still.
So I started to check about and the quotes I am getting is 19 euro.

I asked Irish Life if I could cancel but didn't get a straight answer.

If I just cancel the direct debit and get the new policy then am I breaking the rules?

Thanks

 

[Monbretia]

Usually to cancel a policy where the bank has a hold over for a mortgage you need to give the bank the new policy and get their permission then (letter of no further interest) to cancel the existing. Then you send that to the Irish Life together with written instruction from you and anyone else on the policy cancelling it.

Now that's the way it used to be unless technology has taken over and there is a shorter way such as bank advising IL direct or something, I'd say ask the bank.

Of course you could just cancel the direct debit but if the bank has an assignment on the policy then IL will contact them and then you'll get a letter about your lack of life cover etc etc so if you are taking out a new one you may as well just do it the right way.

 

[Ravima]

Take out the new policy first, then just cancel direct debit. Lender will write to you and send them on the new policy.

It might be more economic to take out life assurance rather than mortgage protection.