I just saw that this should have been posted in mortgage protection, I re-posted it there but can't seem to delete this.
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Hi,
My partner and I (32 & 33) are in the process of getting a mortgage for a house purchase. Our broker recommended mortgage protection + serious illness cover (~€175 per month), which we took out this week. I've since been doing some more research and wonder is there a better way of structuring the various insurances. I understand I have a 30 day cooling-off period to change.
Our policy is for the full amount of the mortgage, assigned to the bank. I've since read a suggestion that it's better to assign the minimum cover required to the bank. i.e. take out Mortgage Protection alone (Have been quoted ~€30 per month) and assign that to the bank to fulfil mortgage criteria.
Thinking it through a bit more now, it seems there is no need to fully pay off the mortgage in case of serious illness, as long as the mortgage is being paid, so it might be better to replace the serious illness cover with Income protection for both of us (possibly to pay out the expected mortgage payment) - this would cover the burden of the mortgage. (Combined quotes of around €65 for myself and partner).
I feel like this would mitigate the majority of the risks, and save ~€1,000 / year. Then we can, in the near future, set up a more appropriate life / standalone serious illness cover for a more appropriate amount to provide additional comfort in case something happens, independent of the mortgage.
I just wanted to get some feedback in case I'm not thinking about this correctly.
Thanks
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Hi,
My partner and I (32 & 33) are in the process of getting a mortgage for a house purchase. Our broker recommended mortgage protection + serious illness cover (~€175 per month), which we took out this week. I've since been doing some more research and wonder is there a better way of structuring the various insurances. I understand I have a 30 day cooling-off period to change.
Our policy is for the full amount of the mortgage, assigned to the bank. I've since read a suggestion that it's better to assign the minimum cover required to the bank. i.e. take out Mortgage Protection alone (Have been quoted ~€30 per month) and assign that to the bank to fulfil mortgage criteria.
Thinking it through a bit more now, it seems there is no need to fully pay off the mortgage in case of serious illness, as long as the mortgage is being paid, so it might be better to replace the serious illness cover with Income protection for both of us (possibly to pay out the expected mortgage payment) - this would cover the burden of the mortgage. (Combined quotes of around €65 for myself and partner).
I feel like this would mitigate the majority of the risks, and save ~€1,000 / year. Then we can, in the near future, set up a more appropriate life / standalone serious illness cover for a more appropriate amount to provide additional comfort in case something happens, independent of the mortgage.
I just wanted to get some feedback in case I'm not thinking about this correctly.
Thanks
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