Mortgage Protection policy now that mortgage has been cleared

[peterwilson]

Hi
Fortunate enough to have just cleared the mortgage.
We have a "Mortgage Protection Assurance with Accelerated Specified Serious Illness Cover" that we pay 76 euro a month for.

I asked if I could change it now that my wife and I have cleared the mortgage and they said ...

"Unfortunately, it is not possible to change the type of policy mid-term.

The policy can be kept as a form of life cover & it would pay out in the event of a claim, but it will continue to reduce as per the original terms I’m afraid, there is no way to stop that.

If you are interested in level term cover, this would have to be a replacement policy & your financial advisor can help you with that."


I asked them to provide
"The current level of cover under policy , and a projection or schedule showing how the cover amount reduces over the remaining term?"

I got the attached.

Should I keep the policy?

I have a policy from work which I think is standard for death (3x salary) and sickness (75%).
I have to check if my wife has similar but I would think she has.

Any thoughts appreciated.
Thanks
P

 

[Dr Strangelove]

Try and do it in reverse:

if someone offered you life insurance to this level at this price would you buy it?

If so, check with a broker to see if there are better prices.

Bear in mind the older you are the more need for medical assessments there are.

 

[ClubMan]

I have a policy from work which I think is standard for death (3x salary) and sickness (75%).
I have to check if my wife has similar but I would think she has.

If you are both covered in work then I'm not sure that there's much point in keeping the erstwhile mortgage protection policy. Except maybe if you have young children? @Dr Strangelove's approach makes a lot of sense too.

 

[Brendan Burgess]

You are paying €900 a year for €190k worth of cover this year + this Accelerate Specific Interest Cover.

So first of all, is this good value on its own merits?
What age are you and your wife?
Do you have any illnesses which limit your life expectancy over the next 10 years or so?

Assuming, you don't it would not seem like great value. But that is a hunch.
You could check if you can get better value elsewhere by asking how much would ten year reducing cover cost you?

If you have a serious illness, it could be great value and comfort.

1) If it's great value keep it.
2) If it's bad value, get rid of it.
3) If it's only ok value, then you need to ask if you need it. And if you don't, get rid of it.

 

[peterwilson]

Thanks all for the comments.

@Dr Strangelove I will indeed check with a broker to see if there are better prices thanks.

@ClubMan our two kids at 13 and 14. So not that young.

@Brendan Burgess
"What age are you and your wife? "
49 and 47
"Do you have any illnesses which limit your life expectancy over the next 10 years or so?"
No illnesses. Both still fit and healthy. Non-smokers.
"You could check if you can get better value elsewhere by asking how much would ten year reducing cover cost you?"
I will do this thanks.

 

[peterwilson]

Lowest quote on Chill is 195 per month ...



Life Insurance[
Serious Illness:
Accelerated
Type of cover:
Dual
Date of birth:
1976
Term/Years:
10 Years
Gender:
M[/td]

Amount Assured:
€200,000
Smoker:
Non-smoker


But on hello.ie I get (no Serious Illness:Accelerated though)

Mortgage Protection Free upgrade to DUAL cover

€24.24Monthly
Premium*

Life Insurance

€47.09Monthly
Premium*