Mortgage Protection & Life Insurance

P

pflangan

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I'm looking for opinion on what to setup for mortgage and life protection.

I've just taken out a mortgage for 270k. I want
i) to pay back whatever's outstanding if me or my partner if the worst happens
ii) to arrange for a lump sum payment in the event of same. (say 100k)

Do I take out life insurance for 370k, or do I take out
decreasing mortgage protection for 270k and an individual 100k life policy?

Any provider names would also be helpful
 
Hi there, I'm not the expert, but I think maybe look into level-term insurance, i.e. the cover stays the same all the way through, but obviously costs more... The financial regulator has a leaflet on insurance, see [broken link removed]. Best if you write to some brokers, like www.labrokers.ie [broken link removed] www.primafinance.ie and there are others as well.
 
The bank said the mortgage protection was advisable but not required by law?

Petal, thanks for the info. That's what I'm trying to figure out. Level term cover is going to be fine, it's just that I don't need to be paying for 300k policy when my mortgage is almost paid.

Essentially all i want is; If one of us passes away during the life of the morgage, to have the mortgage paid, and 100K lump payment made to the surviving partner.

?
 
What bank was that? if you are living in the house you are legally required to have life cover under the consumer credit act. the ONLY exceptions are
1/ if you are over 50
2/ if you have been declined life cover
3/ if you are subjected to a loading which is financially prohibitive.

Life cover can be worked in lots of different ways, your best bet would be to sit down with you financial adviser (broker or you own bank may be able to offer assistance just make sure they deal with a wide range of companies and don't be afraid to ask about the amount of commission they get from each company and if it varies from company to company).

Personally we went with an additional 100k on a reducing term policy with Serious Illness cover included. I've spoken to a few financial advisors who've all said that income protection is better value than SI but I still took the SI as DH's family have lots of cancer history at young ages.
 
well, technically I'm not living in the house. I have had to take out an investment mortgage to buy the house, because of the fact that I'm currently residing in the uk. Maybe it's not a necessity to take out mortgage protection if you're not living in the property. Dunno, have the mortgage anyway, have the house, don't have mortgage protection.

Don't get me wrong, I think I'm an idiot for not having mortgage protection and am in the process of resolving it.
 
No you're quite right as long as it not your principal residence (or your not buying it for a son or daughter to live in, i think) you don't need life cover.
 
Can i just clarify something?

I am 28 nd m girlfriend is 27. Just trying to arrange mortgage protection now. We cont know much about different types of policies. Opted for mortgage protection from different bits of advice here and if we're honest, because it was cheaper! So far lowest quote for year1 is €240 for mortgage value of 350k

We dont mind paying extra if somene could advice us correctly - appreciate any advice.

Thanks,
 
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