Life Assurance - Are we paying too much

sunnysj

Registered User
Messages
10
Hi,

My sister and I have taken out a new life policy on a mortgage of 410k, I am 30, she is 26 and we both smoke. Hibernian are quoting us 75 per month which seems a lot as I was previously paying 27 with Friends First. Is there any reason that could explain the hike and is it possible to switch the policy during the term of the mortgage?

Thanks
 
harvey said:
- become non smokers (filthy habit anyway) - would reduce premium to 30 pm

Does this kick in straight away? I was filling in some forms a while back and it asked if you had smoked during the last year. (I don't smoke anyway so it is just curiosity)
 
took our life insurance 10 years on both myself and better half. had two offspring to consider but didn't overdo the insurance. everyone's circumstances are different and my better half had a death in service benefit and I had a defined benefit pension policy, we had no mortgage so it was mainly to see neither of us would struggle in the event of either of us snuffing it. The policy is on both lives and there was an annual increase (which I always agreed to) to match inflation etc. Today received a letter from Irish Life stating that following a review there wouldn't be sufficient funds in the policy to continue with the current level of cover and offering two options. one was to increase the weekly premium by 11.86% just to maintain current cover or alternatively I could continue to pay the current premium and the policy would be decreased by 7.85% ( my figures - Irish Life merely quoted the new premium/reduced cover). I am going to opt for the same premium and reduced cover as I suspect they will commence yearly increases next year again usually in line with inflation or above.
This cover although covering both lives is pretty basic and the amount is around €50,000, the terrible two are now both at college and while my wife no longer works for a company with death benefit, we are both covered for social welfare ( widow/widowers pensions) so I don't really feel the need for 'excessive' insurance as I know that life insurance companies up the premiums really seriously once you get into your later years. One only has to look at the offices owned by insurance companies, cars driven by insurance salesmen etc to know who is the real winner with insurance. And its not the punter.
 
dam099 said:
Does this kick in straight away? I was filling in some forms a while back and it asked if you had smoked during the last year. (I don't smoke anyway so it is just curiosity)
 
What is the term of policy. Is it an interest only loan. If the term were 25 years and it was a decreasing term assurance policy the premium should only be 54.61 with Hib. If it is a level term assurance policy, the premium would only be 78.32. Seems you may have a level term assurance policy which would make me think you have an interest only loan which would be correct.
 
Back
Top