Mortgage protection fees vs current account fees dilemma

[cruiseshipjonny]

Hello,
I wonder if anyone can give me some advice.
We have a tiny mortgage outstanding with AIB (a couple of hundred euros left so it costs me a couple of euro a month at the minute). It obviously makes sense on one level to pay this off in full and I could do this right now.
But- we have our current account with AIB and it works well for us day to day. AIB current account fees are steep and all of our fees are waived as long as we have our mortgage with them. We also have a few of the 3% online savers, which you need the current account to access. Just as a point of principal it annoys me to pay such high fees to a bank for a current account so I'm keen to keep avoiding this.
But, to have a mortgage we obviously had to have mortgage protection insurance. The one we have reduces in payout value over time and has 16 years left to run. It would pay out something like 160k today if the worst were to happen. It costs us 24 euro per month. You could argue that this is reasonable value life insurance but the payout will continue to reduce over the next 16 years. We also don't actually truly have a mortgage to pay off should something happen to one of us and we each have good jobs and savings so I don't really want the policy for its own sake.
My understanding is that as long as I have the AIB mortgage, I have to pay the 24 euro per month in mortgage protection but if I ditch the mortgage, I will just have to pay AIB banking fees instead.
Can anyone advise what they think is best to do in this situation?
Thank you.

 

[cruiseshipjonny]

Also to add another detail. When I looked at the mortgage insurance policy just now, it is actually assigned to EBS, who our initial mortgage was with, rather than AIB. We remortgaged to AIB a few years after taking out our initial mortgage with EBS. So I have no idea what that adds or doesn't add to the situation, if anyone can throw in their tuppence worth!

 

[Monbretia]

Do you want to cancel the policy? Nothing will happen if you do, I'd be inclined to cancel the direct debit for it and ignore the subsequent letters if any considering it's assigned to EBS! That said it seems good value as policies go for the amount but if you are sure you don't need it financially as opposed to it being a condition of loan offer!

 

[50andOut]

Do you have separate life cover and have you tried getting a new mortgage protection policy quote based on the current mortgage value?

I would imagine you are paying extra/over the necessary fees on this policy that's not fit for purpose?

The insurance policy doesn't need to be with the mortgage lender. I have changed my policy a few times, after checking for new quotes got me lower annual costs - note the mortgage provider always chased me after cancelling the old policy for a copy of the new one.