Mortgage Protection Insurance

Debbie7 said:
Does anyone know whether it's legal for a mortgage provider to insist that you take their mortgage protection deal?

Also is a mortgage protection rate of 0.5% of the overall mortgage fairly standard?
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I think what you mean here with regard to the 0.5% is with regard the mortgage protection.
Mortgage Protection is a reducing balance life assurance, in other words the insurable amount (i.e. €300,000 or whatever your mortgage amount is) reduces over the term set (e.g. 30 years). This has to reduce at a rate. When qouted for Mortgage Protection your qoute should include a rate at which the amount will reduce. By what you are saying the qoute that you received is set at a reducing rate of 5%. If this is so I would suggest that this is a little low (bearing in mind that mortgage rates can be higher than that in todays market). I would suggest that a mortgage protection qoute should not have a reducing rate of any lower than 6%.
 
I took out mortgage protection insurance in May i was being a bit hasty perhaps as it was my first time, mortgage is only being drawn down next week. To cut a long story short i want to cancel the policy which i have currently 5 months old, contacted the brokers and they said there would be no refund and that i would have to contact them again next may to actually cancel it.

Is this the normal procedure?
 
I've just arranged a mortgage with First Active, who should be contacting my solicitor this week with their mortgage offer etc etc. At our last meeting with them they wanted to know about our Mortgage Protection cover. As we had found a few quotes that were cheaper (with 123.ie) than FA's we just said that we wanted to shop around and let them know. The consultant (clerk? manager?) told us that was fine but then gave us a rather vague and unspecified warning to beware of 123.ie as they were actually a part of Eagle Star, not Axa.

I found this to a strange warning to give. What on earth does it matter who they are a part of/underwritten by? As long as they are regulated, obviously?

I would have gone with 123.ie out of sheer bloodymindedness at this point, except I found an even better deal with LABrokers.ie, which seems to be with Caledonian Life.

Are these warnings founded on any basis in reality, or was this a fumbled half hearted attempt at warning us off a competitors product?

We are going to see a financial advisor arranged by FA on wednesday, who will "be able to price match". I seriously doubt it, but I thought it might be fun. Any warnings about a possible hard sell? Can FA mess us about if we don't play ball on their MP products?
 
Just been reading all the previous posts on this subject and got me thinking about my own mortgage protection which is currently with Caledonian Life. To be honest I really don't see the need for it. I'm single and don't have any dependants therefore in the event of my death my family will just sell the house and pay off the mortgage - so what's the point in me having to pay out for mortgage protection?

My mortgage repayments have already increased so much over that last year that this is just another out going that I could do without. Is there any way around this or am I obliged to keep this insurance?
 
The Consumer Credit Act requires that owner occupiers (with some exceptions for age and health issues) must have mortgage protection life assurance. It does not waive this requirement for those with no dependents etc. Your mortgage loan agreement may additionally specify that this cover is required. On the other hand some other posters have mentioned just cancelling such cover without the lender getting upset. However if it was me and I was considering such a course of action I would clear it with the lender first.
 
Jolly Man said:
I took out mortgage protection insurance in May i was being a bit hasty perhaps as it was my first time, mortgage is only being drawn down next week. To cut a long story short i want to cancel the policy which i have currently 5 months old, contacted the brokers and they said there would be no refund and that i would have to contact them again next may to actually cancel it.

Is this the normal procedure?
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Did you pay the full annual premium in May or a discounted version? If the former and you cancel now, you are entitled to a refund of seven months worth...approximately 7/12 of what you paid. If you availed of a discount on the first year's premium, I don't think you're entitled to a refund.

Don't forget you'll still need a policy in place for draw down next week.
 
Sylvester3 said:
I've just arranged a mortgage with First Active, who should be contacting my solicitor this week with their mortgage offer etc etc. At our last meeting with them they wanted to know about our Mortgage Protection cover. As we had found a few quotes that were cheaper (with 123.ie) than FA's we just said that we wanted to shop around and let them know. The consultant (clerk? manager?) told us that was fine but then gave us a rather vague and unspecified warning to beware of 123.ie as they were actually a part of Eagle Star, not Axa.

I found this to a strange warning to give. What on earth does it matter who they are a part of/underwritten by? As long as they are regulated, obviously?

I would have gone with 123.ie out of sheer bloodymindedness at this point, except I found an even better deal with LABrokers.ie, which seems to be with Caledonian Life.

Are these warnings founded on any basis in reality, or was this a fumbled half hearted attempt at warning us off a competitors product?

We are going to see a financial advisor arranged by FA on wednesday, who will "be able to price match". I seriously doubt it, but I thought it might be fun. Any warnings about a possible hard sell? Can FA mess us about if we don't play ball on their MP products?
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123.ie and LABrokers.ie are brokers and not part of Eagle Star or Axa or any other companies. Any warnings like you describe are rubbish.

Personally, I abhor the practice of telling a customer to "come in and see us and we'll see if we can match a price". In other words - "We'll quote you a higher price unless you force our hand." Tell FA to quote their best offer at the start if they're serious about competing. Why would you give them two bites of the cherry?
 
And don't depend on a tied agent salesperson for authoritative or independent advice since they have a vested interest in selling their own wares to you.
 
Thanks for the advice folks. I'm a bit older and cannier than I was when I bought my flat, so lets see what protections they can talk me into buying tonight...;)
 
Hello there,

can anyone tell me if
1) Mortgage Protection insurance can be claimed in tax return form in order to be eligible for credit on it
2)Does it goe under the life insurance section

Thanks a lot for your help
 
I don't think that mortgage protection life assurance qualifies for any tax relief.
 
123.ie are very cheap for Mortgage protection and Home Insurance, and I found them very good and easy to deal with
 
Jane2 said:
Which company offers the best deal? I have heard that some companies offer to refund the first years' premiums for policies taken out on-line.
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www.MyLife.ie search the market for the lowest annual premium, then give you a 65% discount for the first year.
 
Mortgage protection policies are not renewed like a car policy or general insurance. If you pay the premium annualy, they will actualy refund the premium .ie switch six months in after paying a full years premium. Bear in mind a couple of things....As you age, the price increases...so it's not always the best thing to switch. Obviously, if you pay big chunk of the mortgage, you should only have the cover needed to pay off the mortgage.........LA brokers etc....charge the same as others but they refund the commission a normal adviser gets...reason? they dont give advice...I wouldnt advise anybody to go to them for a life policy unless they know what it's about and definately no other protection policies...



CN624 said:
The savings are more than marginal depending on your provider.
For simple life assurance go for the cheapest available. There are NO bells and whistles. You can change at any time and bank the money for the same cover or you can continue to pay for some Fat Cat's lunch at L'Ecrivain[FONT=Arial, Helvetica, sans-serif]. [/FONT]
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I have been searching for a better deal online for my mortgage protection life cover, the site said up to 90% off but when i did my quote it offered 66% off in the first year if I paid upfront.

Does anyone know how to get 90% ?
Are they definitely offering the best deal?
Can anyone recommend any other broker there seems to be a few out there offering similar deals!!!
 
I found 'Monitum' to be very competitive with a rebate on most of the first years payments. No connection with this company.
 
COLAKO said:
needed to pay off the mortgage.........LA brokers etc....charge the same as others but they refund the commission a normal adviser gets...reason? they dont give advice...I wouldnt advise anybody to go to them for a life policy unless they know what it's about and definately no other protection policies...
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If you are buying simple Mortgage Protection Insurance or a simple term life policy to cover your family, I would advise people to use www.labrokers.ie

As long as you know what amount, term, etc. then these policies are simple to understand, and you don't need advice.

Savings policies may be a different matter.
 
Protocol said:
As long as you know what amount, term, etc. then these policies are simple to understand, and you don't need advice.
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Mortgage protection - I would agree that that price is the main issue.

As regards life insurance, most people do not know how much life cover they require or how to calculate it so would need advice on this.

Different companies have different claims records, some insurers contest claims more than other insurers.
Some insurers are financially stronger than others, in these turbulent times this is a factor to consider.
It's all well and good getting the best price but this "ain't worth a hill of beans" when it comes to making a claim on the policy.

There are extra benefits available with some insurers that others don't have.
Some insurers have tele underwriting, some have nurse medicals that will visit your place of work, others still go down the usual (and time consuming) medical exam with your own GP.
Some insurers are just dreadfully slow.
The list goes on and on, just be aware it's not like comparing apples with apples.

[broken link removed]
 
Mortgage Protection

Hi Norfbank,

Thanks for the link to money back mortgages, I am looking to move my mortgage protection cover, but not my mortgage I am lucky as I am on a tracker.

I have checked out monitum, mylife, 123.ie and LA Brokers I had already quoted.

On the same details company recommended and discount was as follows:

Monitum - wait six weeks for refund of 69% - Friends First
Mylife - No online quote - No discount mentioned on site
123.ie - have to call them to get a discount claim up to 70% off
LA Brokers - 55% back after 13 months - did not say company online

Seems to me Monitum offer the best deal, though it would be nice to be able to apply online, think I will go with them unless anyone else knows better?
 
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