Mortgate income protection..

Omnipresence

Hello,
I have just bought a house and have got income protection from EBS... house all happened kinda quick so did'nt have time to shop around... going to re-evaluate once all the paperwork is sorted...

Anyways .. i have been quoted 138EUR a month (me and my girlfriend) for this...

This seems excessive !!! as it only kicks in IFF i lose my job, and if i have been out of work for over 6 weeks etc etc..

Anyone can tell me ... "tough this is how much it costs" or "you are being screwed" ...

Just have nothing to compare it to....

1600+ per year .. its a bit scary

-Alan

The Gecko

Hey.

Yes, you are indeed being screwed.

I am paying €14.90pm with New Ireland...

croiadh

There is a difference is the policys with income protection, your income up to certain limits is covered and with life protection your life is only covered upon death.

Life protection is a legal requirement if you have a mortgage but income protection is not.

I work as a mortgage broker and I dont usally see many of my client ggoing for the income protection and what I suggest is that they save up a small lump sum in case of hard times.

You do not need income protection is order to get a mortgage and you dont need to take the lenders life insurance - you are free to shop around for this and you will save a lot if you do.

It looks to me that the lender or the person arranging the mortgage in the bank is adding on policys for possible commision.

Ogham

I wouldn't give those income protection policies the time of day!
There are so many clauses and catches - and it only covers you for a certain length of time I bet. If you hit hard times - you have been paying enough tax and prsi to claim whatever benefits you can - and mortgage assistance is available if things get really bad. Most lenders will allow payment breaks for a period of time to soften the blow. It's just a bit of a money earner for the brokers and the insurance companies.

http://mortgages.blogs.ie

nesf

I can see the value in them for some people, but personally I'd just take a 100 or whatever a month and put it aside for a generic rainy day. i.e. there's more bad stuff that can happen outside of trouble meeting mortgage payments.

JimmySmith

I did some work for a well know insurance company and they actually have a team of people whose sole job is to figure out how to wriggle out of paying up on claims.
They had a 90% success rate on wrigglinh out of serious illness payments and close to that for income protection.

Get a current account tracker mortgage. Leave the €138 per month in the current account. If you ever fall on hard times its there to pay the mortgage.
You'll find after reading all the small print that income protection is not a great buy at all.

Omnipresence

Thanks everyone for giving me a pretty clear cut answer on the situation... yeah I think putting a bit extra in on the mortgage every month (to reduce over all term and to offset against inflation) and also to put a tad aside for a rainy day... should suffice....

Guess I was worried about doomsday scenario where I was out of work for a 3/4 months... like a mate was and his income protection kicked in and saved his ass...

(Just giving the point that it does work for some people and some places do pay out..)

But at 138 eur month... not an option really for me...

-Alan