Mortgage Protection Insurance - change Ins company every year?

D

Dublin12

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I have been paying mortgage protection insurance (straightforward cover on outstanding mortgage - no serious illness / loss of income cover etc) for the past few years.
Is there any drawback to changing insurance company provider every year to avail of heavily discounted 1st year introductory rates? I did this last year and read the policy and did not come across anything that would seem to disadvantage me. Just wondering if I should do the same again this year with another insurance comapny.
 
The main risk in doing this is if there is any change to your health, personally I would put even the most trivial visit to doctor on the application form if there has been one as that is what the insurance company will concentrate on in the event of a claim. I have seen several payouts declined for 'non-disclosure' where it was done in total innocence, for example customer had common medical test and result was clear, failed to mention it on application form as obviously they considered it a thing of nothing after clear result but it resulted in the policy payout being declined.
 
I plan to do this also. Can't see a reason not to do it. At least for the first few years..
 
I rang the insurance company yesterday and asked them if there was any issue with this approach, her only point was that if I keep switching, over time the quoted premium will get more costly as I get older (and a greater risk) but this would more than likely be offset by cheaper premiums in the short term.
 
Hi there
For what it's worth, I did this for about 5 years in a row but found last year (Sept time frame) that these offers are now almost non-existent as the companies become wise to the practice.
Also depending on your age and size of mortgage, you may be asked to submit to a health check. Each year (as you get older) this check becomes more comprehensive and you are taking a risk of something coming up that means the insurance company turns you down/hikes up a premium. Also, I was advised that because of the equality legislation, females will no longer get cheaper life assurance and thus any savings up to this year may well be obliterated if looking to change next year when the equality legislation has taken effect.
In summary, found it brillaint for a few years but depending on the elements mentioned above, just be aware that there are considerations before taking this course of action. As it happens, we will no longer be looking to do this as the risks are too great/mortgage still very big/age factor really starting to kick in with regards to the health testing required.

Hope that helps
S
 
Slight hi-jack.

Have a quote of €221 from La brokers for mortgage protection - it mentions you can pay the first year in advance for €44. Is there any catch? Are you stuck for a minimum period of time?

Anyone used La brokers?
 
Yes we used LA Brokers and found them/him quite good to deal with. Absoloutely no clue on the pay in advance though I suspect its because brokers get a fee from the insurance firm and pass some of that on to you. From memory I think all the fees they received are disclosed to you when you take out the policy.
 
Agree with Shakespeare that these offers are not as common as they used to be but got 60% reduction in 1st years premium with Irish Life product through a broker, however also got an interesting broker quote from Acorn Life where discount is applied at the end in that the final 5 years of cover are free.
Given I am in good health now it may be best to bank this product and not take the risk of switching every year and possibly developing a health issue along the way that would impact my premium.
 
I like my deals up front, wouldn't be taking a chance on any company still being around and deals being honoured etc way into the future. Also if you ever decided to move and get another mortgage and had to take out a new larger or longer policy or whatever then there is no final 5 yrs as the policy would not have run it's course, what happens then? Do you get a refund of 5 yrs worth you paid? Highly unlikely methinks or maybe I've just become too cynical!
 
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