Bank of Ireland sold us the life cover and I thought it was linked to mortgage and that when mortgage was paid it was finished with too.
......................I sold a lot of insurance with mortgages and I never considered level term cover a trick, it was often not much more expensive than decreasing and at least if the worst happened there was hopefully a surplus few bob for the survivor. Often new mortgage holders haven't the money to take out a second level policy so at least this is at least a step up from basic decreasing cover or that was my thinking on it anyway
Reading the original post I was fairly certain that the bank sold you that policy. It's a trick they use to get you to pay higher premiums. When you get a capital & interest mortgage, a reducing term policy is by far the cheapest. It assumes a mortgage interest rate of 6% and the level of cover reduces as if you were paying a mortgage with 6% interest. At the end of the policy, the life cover is zero, just like your mortgage.
Steven
www.bluewaterfp.ie
So you're telling me it probably is linked to mortgage then? And when mortgage is paid life cover is gone? Should I change to a life cover that isn't linked to mortgage?
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