Life Life Insurance cover

N

Nealos

Registered User
Messages
10
folks,

quick question.

I have a life insurance policy with BOI, i recently got it altered when i added a small extension to the house. Anyway, i got a letter in the post this week telling me the policy was increasing for premium - 70 to 73€ or something small like that. My question is this though, the Amount insured is for €275,000. The house value is around 300k and we owe maybe 200k on it.

Am i over insured? if it were to be closer to the mortgage value at the time of the extension, would it decrese the premium any amount. Is it worth worrying over?
 
To cover your mortgage, all you need is a mortgage protection (decreasing life cover) policy. This is the cheapest type of policy and will cover the mortgage if you die (The cover reduces as your mortgage reduces). At the moment I would think you have a reviewable whole of life policy through BOI. You could ask them to reduce the cover if you just need the mortgage covered and don't need any additional life cover for dependents etc. What I would be more worried about is, if this is a reviewable whole of life policy, the company will review the cost after 10 years and then every 5. Which means the policy could get very expensive the older you get. I would compare the policy to whats out there on the market to make sure you are getting the correct cover.


www.powerinsurances.ie
 
you might want a bit more than simply to clear the mortgage. if you are single, then covering the mortgage is grand, but if you are married and/or have child(ren) you might like to have more cover to provide for spouse and child(ren) in the event of your death.

You should also take into account any other life assurance you might have either on its own or as part of a work pensions scheme.

There's no need to have too much money in the event of your death, lest there be a queue outside the funeral parlour to marry your former spouse!!!!!!!!!!!
 
A basic mortgage protection policy would cost two 30years olds only €14pm, two 35 year olds €19pm and €27pm for two 40 year olds.

Assumption: Mortgage Protection policy, life only
€200k death benefit over 20 years.

You could assign this policy to the lender and keep the other one for personal protection or reduce to save on premiums.

Regards

John
 
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