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Mortgage Protection

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  • 20-11-2008 9:40am
    #1
    noel123ie
    Registered Users Posts: 285 ✭✭


    Hi there

    I have called a no of companies re this and the best I can get is from http://www.mylife.ie

    Has anyone dealt with these?

    Im a bit cautions as all they need is a simple form with name address, mortgage no and direct debit mandate.

    Has anyone had to claim from these?

    Also re www.primafinance.ie has anyone used these there registration documentation is much more comprehensive and includes a questionaire and proof of name and address

    Thanks for your help,
    Noel


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    #2
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    Never heard of them.

    I used LABrokers last year and found them to be the cheapest at the time (currently offering up to 85% discount on your first year).

    Went with Eagle Star through them.

    Thinking back to the documentation, I remember there were loads. However, the bulk of it is for the insurer and not the broker. Perhaps mylife have only sent you on their end of the documentation and the insurer will send you on firther documentation to fill in afterwards (just guessing here!)


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    #3
    frag420
    Registered Users Posts: 6,158 ✭✭✭frag420


    i went with acorn life. i did plenty of research on this and they seemed to be the best option. far better cover and cheaper than any of the banks. got life cover, illness cover, accident cover and they were still cheaper than anyone else. highly recommended. i would advise you to check all benefit docs carefully for each provider as the wording will be very important. also try and get a whole of life policy as oppossed to cover that only covers you for the life of the mortgage.


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    #4
    zokrez
    Closed Accounts Posts: 565 ✭✭✭zokrez


    frag420 wrote: »
    i went with acorn life. i did plenty of research on this and they seemed to be the best option. far better cover and cheaper than any of the banks. got life cover, illness cover, accident cover and they were still cheaper than anyone else. highly recommended. i would advise you to check all benefit docs carefully for each provider as the wording will be very important. also try and get a whole of life policy as oppossed to cover that only covers you for the life of the mortgage.

    I'd never go for whole of life cover.


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    #5
    frag420
    Registered Users Posts: 6,158 ✭✭✭frag420


    why is that?even when i was quoted for whole of life they were still cheaper than any of the term policies i was offered.a lot cheaper


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    #6
    kaiser sauze
    Registered Users Posts: 1,558 ✭✭✭kaiser sauze


    A Whole of Life policy can sometimes be a good option for mortgage life cover seekers. It should not be ruled out by any poster here without knowing the full facts.

    It depends on those person(s) circumstances and without further information, I would not be prepared to give a recommendation either way.

    Get professional advice, is always the best advice.

    I am surprised to hear a poster here saying that they got a WoL policy for a smaller premium than a term assurance policy. That is not the norm.


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    #7
    frag420
    Registered Users Posts: 6,158 ✭✭✭frag420


    i would imagine it would be cheaper as you would be paying your premium over a longer period of time. Also if the company you were with had good fund managers behind them(Acorn life have HSBC as there fund managers) then they could afford to offer the cheaper premium as it is going to be invested in the long term by the fund managers and if they are decent fund managers then there will be a better return for both the client and the company. Also dont forget that if you dont use your life cover during the term of the mortgage then what you have paid as life cover/morgage protection of 25-35 yrs is gone down the drain where with a whole of life policy it is kept intact and can be availed of after the mortgage is paid of.

    giddy up


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    #8
    kaiser sauze
    Registered Users Posts: 1,558 ✭✭✭kaiser sauze


    frag420 wrote: »
    i would imagine it would be cheaper as you would be paying your premium over a longer period of time. Also if the company you were with had good fund managers behind them(Acorn life have HSBC as there fund managers) then they could afford to offer the cheaper premium as it is going to be invested in the long term by the fund managers and if they are decent fund managers then there will be a better return for both the client and the company. Also dont forget that if you dont use your life cover during the term of the mortgage then what you have paid as life cover/morgage protection of 25-35 yrs is gone down the drain where with a whole of life policy it is kept intact and can be availed of after the mortgage is paid of.

    giddy up

    Acorn's minimum premium, when last I checked, was €50 per month. It is unlikely to be much different now. This is for WoL cover, they do not provide term plans.

    Many terms plans can start for as little as €10 per month.

    You are calling term assurance plans a waste of money, do you say the same about car insurance?

    Elaborate on your last sentence, please? It sounds to me like a smooth talking Acorn Life rep has had you.


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    #9
    broker2008
    Registered Users Posts: 750 ✭✭✭broker2008


    frag420 wrote: »
    why is that?even when i was quoted for whole of life they were still cheaper than any of the term policies i was offered.a lot cheaper

    I would be extremely surprised if that was the case. Please post the details, age next birthday, smoker status, sum insured and term of the loan and I will look at examples. I presume you are talking about their "Life Plan" ? The policy would have to bomb out after about 10 years which defeats the purpose intended :(


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    #10
    frag420
    Registered Users Posts: 6,158 ✭✭✭frag420


    your correct,the cheapest they do is 50 euro per month. However if the cover you require costs say 37 euro the balance is put into an incashment policy which is a savings plan that will give you a return in 10-20 yrs. The return can sometimes be more than the sum of the premiums over this period of time so you would actually have had free cover.
    i never said that a term policy is waste of money. If something were to happen to you the day after your polcy finishes then what would your dependents get?? If you take out 300K cover on a whole of life plan then when the mortgage is paid in say 25-30 yrs you will still have min cover of 300k. However if you pay 55-65 life cover a month over a 30 yr term which adds up to 19,800 euro and never claim on your life cover then this 19,800 is gone to the bank never to be seen by you again and you are no longer covered.

    How do you mean the policy wold have to bomb out after ten yrs which defeats the purpose.

    I am male, 29 yrs, smoker, with a whole of life policy.
    life cover-100k
    citical illness cover-40k
    daily hospital cash- 100 euro
    surgical cash-20k
    acidental inury cover-4k

    Premium-50 euro

    this is sustainable for 15 yrs, 7 months. At this time the policy will be reviewed to see if the premium paid is enough to maintain the level of cover required. If it is not sufficient as i may have a mortgage or kids(who are covered free) then i would have to increase the premium. I will not however be asked to do a medical at this stage. If your cover on a term ceases after the term and you wish to continue cover you will be asked to do a medical and any medical conditions you have encountered during the term of the cover will be taken into account.So if you were say 55 yrs old and the mortgage is paid and your term cover has ceased and you want to continue your cover then you would be paying an extortionate amount to cover yourself.


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    #11
    kaiser sauze
    Registered Users Posts: 1,558 ✭✭✭kaiser sauze


    frag420 wrote: »
    However if the cover you require costs say 37 euro the balance is put into an incashment policy

    Sorta right...
    frag420 wrote: »
    which is a savings plan

    ...not right...
    frag420 wrote: »
    that will give you a return in 10-20 yrs. The return can sometimes be more than the sum of the premiums over this period of time so you would actually have had free cover.

    Only if the fund does amazingly well. The costs of providing the cover have still to be paid, just like a term policy.

    frag420 wrote: »
    i never said that a term policy is waste of money. If something were to happen to you the day after your polcy finishes then what would your dependents get??

    In the case of either type of policy: nothing.
    frag420 wrote: »
    If you take out 300K cover on a whole of life plan then when the mortgage is paid in say 25-30 yrs you will still have min cover of 300k.

    True, as long as you kept up the cover level after the review stages, and the likely hike in premiums.
    frag420 wrote: »
    However if you pay 55-65 life cover a month over a 30 yr term which adds up to 19,800 euro and never claim on your life cover then this 19,800 is gone to the bank never to be seen by you again and you are no longer covered.

    True, but the service has been provided, without any review or any change in premium throughout those thirty years. Nothing is free, and saying that a WoL policy is free when compared like this is not accurate.
    frag420 wrote: »
    How do you mean the policy wold have to bomb out after ten yrs which defeats the purpose.

    I'm not sure what you are referring to here.
    frag420 wrote: »
    I am male, 29 yrs, smoker, with a whole of life policy.
    life cover-100k
    citical illness cover-40k
    daily hospital cash- 100 euro
    surgical cash-20k
    acidental inury cover-4k

    Premium-50 euro

    If you decide to use this policy as cover for a mortgage that is a likely increase in life cover and instant review.
    frag420 wrote: »
    this is sustainable for 15 yrs, 7 months.

    ...based on information to hand at the time of that projection. How recent is this? If this was over six months ago you might find that next year's review will show a significant reduction in sustainability.
    frag420 wrote: »
    At this time the policy will be reviewed

    ...and can be reviewed at any time the life office sees fit. WoL policies are not as clockwork as they might like you to believe...
    frag420 wrote: »
    to see if the premium paid is enough to maintain the level of cover required.

    If it is not, you can be on the receiving end of a hefty hike in premium
    frag420 wrote: »
    If it is not sufficient as i may have a mortgage or kids(who are covered free) then i would have to increase the premium.

    As I said earlier, the review could be a surprise. I also notice you are a smoker, that will hit you harder each year it goes by.
    frag420 wrote: »
    I will not however be asked to do a medical at this stage.

    True, but you will be asked to sign a declaration of health. If you have any new illnesses at this time, compared to when you took out the policy, the new illnesses will be taken into account for the increases in cover that you seek.
    frag420 wrote: »
    If your cover on a term ceases after the term and you wish to continue cover you will be asked to do a medical and any medical conditions you have encountered during the term of the cover will be taken into account.

    Not true.

    If they have a conversion option they do not need to do a medical. As far as I am aware Eagle Star will allow this conversion to apply to serious illness cover, too, unlike the other major life offices.
    frag420 wrote: »
    So if you were say 55 yrs old and the mortgage is paid and your term cover has ceased and you want to continue your cover then you would be paying an extortionate amount to cover yourself.

    True, if they had not taken the option of a conversion option. However, I am sure that older people can understand that their rates are going to be much higher than those of a thirty year old.


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