Mortgage protection policy

LizardKing

I took out a policy via a broker about 5 years ago. Initially I had a 35 year mortgage so policy was based on that but since then I have repaid a lump and am paying off extra each month so have it down to 23 years left.

Does anyone know if I can lower my mortgage protection policy to reflect this?

I'm trying to get through to the broker but I fear he's gone bust and Aviva have told me I need to contact the broker

tHE vAGGABOND

I have just changed mine - so you can move it as often as you like, there is no term or anything...

You just need to have cover at all times..

Just go to a new broker? There are still quite a few out there desperate for your call!!

bailes

I am a broker and you most certainly can change the terms of your policy or cancel it and take out a new One. The first thing you need to do is contact your mortgage provider and ask them what is there exact requirement i.e. confirm the term remaining and the balance outstanding.

after that it's quite simple contact a regulated broker and apply for new cover assuming you have no major medical issues since you took out the last policy then you should benefit from cheaper premiums.

Aviva?? not sure how they would be one of the most expensive providers in the market was your Insurance guy a tied agent?

If I can help P.M me

cosmowillie53

Any ideas on how this works..
Four years left on mortgage.
€ 14000.00 left to pay.

Mortgage protection is the reducing type but the mortgage reduced at a different (faster) rate over the years.
Mortgage protection is now worth € 24000.00.

Question: At the end of the four years what happens the surplus ( approx 10k)

Any ideas please .

bailes

Mortgage Protection is like life insurance, so if you or whoever is covered on the policy died the policy would pay out €24k, €14k would go to the bank to clear the mortgage the remaining €10k would go to your estate.

It only becomes relevant if you die, otherwise the policy will have an end date or you can cancel it when the mortgage is paid off or if there is a conversion option on it you could take out another life policy without having to do a medical. would need to see the policy or have all the benefit details to advise further.

there is no value attached to the policy so it's not worth €10k in 4 years time, unless you die and i'm sure your presence is more valuable than €10k.

hope this helps

cosmowillie53

The mortgage protection at the moment costs €41.00 per month.
Is there a way this can be restructured to get better benifit from this payment.
I know protection is available for 10/12 euro but to change to that level the existing benifit would be lost ( I think)

Any ideas.

bailes

cosmowillie53 wrote: »

The mortgage protection at the moment costs €41.00 per month.
Is there a way this can be restructured to get better benifit from this payment.
I know protection is available for 10/12 euro but to change to that level the existing benifit would be lost ( I think)

Any ideas.

if I have it right you are paying €41 per month for €24k of life cover which is reducing with 4 years left on the contract.

This seems expensive but i would need more details re age, health status and other details on the existing policy before i would make any recommendations.

if you p.m me i will revert with suggestions