Insurance Question

P

profasoc

Registered User
Messages
12
Hi,

I have a new employer out side of Ireland and am insured for health and life can I cancell my Canada life policy that I took out with my mortage, it is cositng more than 200 euros a month.

Thanks
 
You will not be able to replace your existing mortgage protection with an employee death benefit policy if thats what you mean.

You are free to cancel your mortgage protection at any time, if you felt that you have enough benefit to repay the mortgage upon your death from your employers benefit ( presume its some kind of death in service policy) however if you ever leave this current employer you will loss such benefit and your mortagge will not have a suitable policy assigned to repay it upon death.
 
To be hones we were very green when we bought the appartemt and we went with Canada life. We took the one that cevered every thing. But I belive it is a very bad one

Do you realt need a lfe insurance for a mortage. The insurance I have is a world cover as used by the UN if anything happens it pays. I also have enough cash reserve to pay the mortage for my wife if i were to die.

What can I do?
 
If you think the policy is too costly, and your very confident that in the event of your death your wife will not be left with a financial burden then cancel it you can take out a basic decreasing mortgage protection policy to cover the mortgage, but be aware you are probably going to loss additional benefit like serious illness, hospital cover.
I was going to say have it reviewed by an independent broker to see what benefit you have and if you need all the benefit etc.. but the resulting posts will go like this

" theres no such thing as independent broker, they are agents to life assurances companys and are only out to sell you over priced policies etc etc etc Blah Blah blah"
 
Thanks,

Yes I am 100% sure she will be fine. Who would you recomend and do you have an Idee of how much it might be with a loan of 240.000

Thanks once more
 
A lot less than €200 p.m. I suspect. Your lender may have an assignment (legal interest) over the existing policy, and will require a repacement policy to be in force before executing a release deed of assignment on the old one.
 
It is a mandatory requirment in this country to have life cover with a mortgage on your PPR if you are under age 50. There are certain circumstances whereby you can waive this but these only really relate to ill health.

And €200 per month does see very high, you possibly have what is called a Whole of Life contract with Critical Illness built in as additional cover as opposed to accelerated cover. And there are independant brokers out there. Life cover should in general be choosen by premium, but Serious Illness would be choosen by the benefits covers and also the claims history of the provider as with PHI. Most brokers would tend to know which companies to go for based on the clients health, age and occupation. For example, Canada Life don't look too favourable on Carpenters for Critical Illness and if you are asthmatic New Ireland tends to give the best rates. If however you decided to go with your lender, for example Irish Permanent, they may set up an Irish Life policy for you as they are tied to them and if for example you are over age 50, Irish Life could be quite expensive and Friends First generally have best rates for the older clients.
 
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