1stimebuyer
Registered User
- Messages
- 11
Hi,
Firstly, thanks to this site as it has been a huge source of information whilst going through the mortgage and house purchase process.
I am looking for Mortgage Protection and have had conflicting advice from different advisors. As such I am unsure what product to get. We've contacted a few different people to try get a good view of our option:
1 - Advice from bank issuing mortgage: Get full cover in case of death (banks min requirement) + 50% Serious illness cover + consider income replacement cover for my wife in case of inability to work.
2 - Advice from 3 party issuer with obvious vested interest in selling highest premium (same as Bank). Same as option 1 mainly but didn't offer replacement income (didn't ask as didn't do a full review like the bank)
3 - Independent clinic on financial advice my wife attended through her job - Go for the minimum the bank will accept and add extra cover in ~10 years should you need. Also potentially cover inability to work. I'll add some more data to support that below.
Our situation:
25 year mortgage that is ~17% of net income
Expect to clear the mortgage in ~20 years - Variable rate. (considering asking to reduce monthly cost with over-payments rather than term, due to our age)
We are both 32, good health, don't smoke. Have private health insurance.
My wife works in public sector and has a very small risk (in our opinion) of a permanently debilitating injury through work that will stop her working in future. She has a job for life otherwise. I get a widows pension if she dies.
I work in IT in a field in strong demand for a reasonably big company. I get a good factor of salary for death in service.
Price:
Option 1 - Mortgage protection + 50% serious illness - €55/Month (Irish Life)
Option 2 - Mortgage protection + 50% serious illness - €43/Month (exact same cover as above with a different provider (Zurich)
Option 3 - Mortgage protection €16/Month + optional salary replacement cover €30/Month
So my main question is, with all of the information above what would be your recommendation and why. I'm seriously leaning towards the cheapest option but want to make sure there isn't a general consensus to opt for more than the min cover.
Firstly, thanks to this site as it has been a huge source of information whilst going through the mortgage and house purchase process.
I am looking for Mortgage Protection and have had conflicting advice from different advisors. As such I am unsure what product to get. We've contacted a few different people to try get a good view of our option:
1 - Advice from bank issuing mortgage: Get full cover in case of death (banks min requirement) + 50% Serious illness cover + consider income replacement cover for my wife in case of inability to work.
2 - Advice from 3 party issuer with obvious vested interest in selling highest premium (same as Bank). Same as option 1 mainly but didn't offer replacement income (didn't ask as didn't do a full review like the bank)
3 - Independent clinic on financial advice my wife attended through her job - Go for the minimum the bank will accept and add extra cover in ~10 years should you need. Also potentially cover inability to work. I'll add some more data to support that below.
Our situation:
25 year mortgage that is ~17% of net income
Expect to clear the mortgage in ~20 years - Variable rate. (considering asking to reduce monthly cost with over-payments rather than term, due to our age)
We are both 32, good health, don't smoke. Have private health insurance.
My wife works in public sector and has a very small risk (in our opinion) of a permanently debilitating injury through work that will stop her working in future. She has a job for life otherwise. I get a widows pension if she dies.
I work in IT in a field in strong demand for a reasonably big company. I get a good factor of salary for death in service.
Price:
Option 1 - Mortgage protection + 50% serious illness - €55/Month (Irish Life)
Option 2 - Mortgage protection + 50% serious illness - €43/Month (exact same cover as above with a different provider (Zurich)
Option 3 - Mortgage protection €16/Month + optional salary replacement cover €30/Month
So my main question is, with all of the information above what would be your recommendation and why. I'm seriously leaning towards the cheapest option but want to make sure there isn't a general consensus to opt for more than the min cover.