Switching lender when you have a block policy?

T

tommyryan55

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I have a block policy with Irish life (PTSB mortgage) taken out in September 2013, I have been fighting with Irish life on and off for the last year to get it reassigned. Its hard to get a consistent answer from Irish Life as whether the policy can be reassigned. I am currently waiting for PTSB to advise if they will allow the policy transfer from their name.
 
Thanks for pitching in Tommy, much appreciated.

In that case, it appears that these types of group policies are not quite relics of the distant past.

Can you give us the context within which the issue arose? Were you switching mortgage provider or were you hoping to assign the benefit of the policy for some other purpose?
 
Sarenco said:
Thanks for pitching in Tommy, much appreciated.

In that case, it appears that these types of group policies are not quite relics of the distant past.

Can you give us the context within which the issue arose? Were you switching mortgage provider or were you hoping to assign the benefit of the policy for some other purpose?
Click to expand...

I had thought about switching last year but my wife changed jobs so that couldn't so decided to try and have everything in order for when I could switch.

It was at that point I approached Irish Life and til them I would be switching in the next year and would like the policy reassigned.

They refused saying I would have to cancel and reapply for new cover.
 
Thanks for the follow up Tommy.

That looks like a very unfortunate disincentive to switch mortgage providers.

I think if I was in your position I would consider making a complaint to the FSO on the issue.
 
(I have separated out this from a longer thread to focus on this issue.)

Tommy

When you took out the policy, why did you go with Irish Life?

If this can't be reassigned, you should take out a new policy now so that when you are ready to switch lenders, you will have a policy in place.

As they are a disincentive to switching, should these policies be banned?

Sarenco - on what grounds could he make a complaint?

Brendan
 
I attach a copy of the Irish Life Block Policy (I have deleted 42 pages which specify illnesses).

This policy is taken out by the proposer - permanent tsb - on the life of the borrower.

I can see why it can't be reassigned to another lender.

It's a very bad idea for anyone to take out such a policy.

Brendan
 

Attachments

  • Irish Life block policy.pdf
    424.5 KB · Views: 329
Brendan Burgess said:
I can see why it can't be reassigned to another lender.
Click to expand...

You're right, the benefit of that sample policy couldn't be assigned by a borrower as it currently stands.

However, the policy could be easily amended by PTSB/Irish Life so that the individual borrower is substituted as the proposer/beneficiary, with responsibility for making the premium payments under the policy. If the policy wording is amended on that basis, the benefits under the policy could then be readily assigned.

I agree with you that these types of policies are not in a consumer's interests.
 
When we went for our mortgage time was against us so it seemed simpler and quicker to use Irish life (Ptsb's tied agent), although the sales agent when through some of the policy at no point do we remember been told that there would be issues on switching the mortgage.

I received a reply from Irish Life to my complaint on the 1st of June along with a €100 voucher.

They advised that they have reviewed their process and if they receive a deed of release from ptsb they will release my plan from ptsb and can reassign
 
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