Mortgage Protection Question

Discussion in 'The Switchers' Forum' started by doylester, 11 Jan 2019.

  1. doylester

    doylester New Member

    Last edited: 11 Jan 2019
    Any help much appreciated

    Was with EBS - took out protection through them with Irish Life.

    Changed to Ulster, at the last stage of the switch we were told our protection is non-transferable - Block Policy??
    Do not remember being clearly advised of this. May be in the terms, but I guess that is significant enough of a term that must be pointed out clearly.
    UB said no probs, you have 30 days to put one in place.

    Since we took out original cover, my partner has had to have a medical exam, and a follow up is due in late Feb.
    Irish Life (and I presume other insurers, have not sought quote yet though) will not offer a new policy until the results are available, which could be end of March.

    I have complained already that the terms of the original cover were not fully explained to me.

    Any advice is most welcome.

    EDIT: the swich has already gone ahead - we are now UB customers - I am just concerned cover may be denied based on results - though we do expect that to be good news at least.
    Last edited: 11 Jan 2019
  2. mugsymugsy

    mugsymugsy Frequent Poster

    Last edited: 11 Jan 2019
    Was the original policy bought via the bank or separate and then assigned - reading it via bank.

    I remember when I took mine out via a broker and assigned it that this was a consideration that I didn't want to be tied to the bank (if we switched then could be an issue with re-assigning) - don't know if I read it here or somewhere else.

    That along with it was cheaper and relatively easy getting it from a broker.

    Not a technical expert far from it but just giving my story. I would strongly suggest if you can to get the original documentation and check what is in the detail but unfortunately it could be the case.

    Found something on cosumer protection site - note that's for mortgage protection policy
    Last edited: 11 Jan 2019
  3. doylester

    doylester New Member

    Many many thanks. I've been going through the library of documents we received at the time, but nothing yet.
  4. michaelm

    michaelm Frequent Poster

    If the bank arranged it then it's likely a non-transferable block policy. You may be able to get an extension or waiver from UB to putting a new policy in place. What can they do anyway? They're kinda stuck. Might you have other life assurance that you could assign to the UB mortgage?
  5. doylester

    doylester New Member

    They are, but we could be too if we ever needed to claim, which would end in a endless blame game between the lenders and insurer.
    Fingers crossed the results are good news and we can just start a new policy in March.
    No other cover in place.
  6. cremeegg

    cremeegg Frequent Poster

    I don't see why. If you needed to claim any payout would still be yours as you no longer have a mortgage with EBS.

    It is true that EBS would have to confirm this and that would add a layer of admin to the process, but it hardly seems worth taking out new insurance, if it was more expensive. And certainly not two policies if you cannot cancel the original.
    Coldwarrior likes this.
  7. RedOnion

    RedOnion Frequent Poster

    My understanding of these block policies is that once you repay the mortgage, the bank will cancel the policy, so you're left with no cover.

    OP, if the existing policy is cancelled, the best you can do is try get cover. If you are refused, then you have grounds to get a waiver for cover from UB to get them off your back. However, you're left in a situation that you have no cover if anything happened to either of you.

    And fingers crossed results are good and you can get cover in place.
  8. Monbretia

    Monbretia Frequent Poster

    The block policies cease when the mortgage is paid off, usually. I did have a case once where the customer had a health issue which meant he couldn't get new cover and the block one was going to finish on paying off the first mortgage. They had to change to a new mortgage so no option but to go ahead with clearing original.

    They were able to do a waiver for the new mortgage but after much pestering and negotiation etc with the block policy underwriters who were a big well know insurance company the company agreed to issue a new policy based on the same terms as the block policy in place or transfer it to a new policy, I can't remember the exact terms used.

    Anyway it meant that for example if the block policy had 15 yrs left to run and was for 100k say that an identical policy was issued with those details but as a standalone policy so was basically taken out of the block policy and issued separately at going rate. Might be worth asking is that a runner.
  9. doylester

    doylester New Member

    Many thanks for the replies.