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life insurance

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  • 01-07-2012 12:07pm
    #1
    cena
    Registered Users Posts: 10,021 ✭✭✭✭


    So I had a meeting the bank during the week reviewing a few thing for me and going through stuff.

    One thing that came up was some sort of life insurances.

    Is it a good idea for a young lad to have.

    Also they want me to open a savings account which I don't feel comfortable doing. I have a current account had the money is not making anything. I feel if I move it to a savings thing I can't get at the money.

    I feel I need to be able to get at the money if I need it.

    What should I do?


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    #2
    Rebel1977
    Registered Users Posts: 802 ✭✭✭Rebel1977


    Life insurance is up to you, have you a mortgage, kids, partner etc
    If no to all the above its up to you only thing is younger you take it out the cheaper the premium is.

    Don't let them pressure you into savings accounts, only looking to make money for themselves. Plenty of demand/regular savings accounts with good rates and likes of rabo have good demand rates also.


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    #3
    Sam Kade
    Registered Users Posts: 12,313 ✭✭✭✭Sam Kade


    Life insurance and banks don't work. First off all they want is your hard earned money. If you are getting a mortgage it is not compulsory to get life insurance with it even though the bank will make you believe otherwise. If you decided that you need insurance you can go to a broker. If you get insurance from the bank and have any problems with it down the line the bank will quickly wash their hands of it and say it has nothing to do with them even though they pushed you into buying it in the first place. Ask them do you need to have a medical to get the insurance when they say no need ask them what will stop the insurance company paying out if there is a claim.


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    #4
    roro2
    Registered Users Posts: 412 ✭✭roro2


    If you are getting a mortgage it is not compulsory to get life insurance with it even though the bank will make you believe otherwise.

    It is compulsory, under the Consumer Credit Act, with a few exceptions. Most lenders will also insist on it as a condition of sanction.

    But there's is nothing in the OP's post to suggest he needs it.


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    #5
    Sam Kade
    Registered Users Posts: 12,313 ✭✭✭✭Sam Kade


    roro2 wrote: »
    It is compulsory, under the Consumer Credit Act, with a few exceptions. Most lenders will also insist on it as a condition of sanction.

    But there's is nothing in the OP's post to suggest he needs it.
    Fair enough if it is compulsory with a mortgage. You don't have to get the insurance with the lender for the mortgage you can shop around for the best deal.


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    #6
    dog the bounty hunter
    Registered Users Posts: 3 ✭dog the bounty hunter


    Sam Kade wrote: »
    Life insurance and banks don't work. First off all they want is your hard earned money. If you are getting a mortgage it is not compulsory to get life insurance with it even though the bank will make you believe otherwise. If you decided that you need insurance you can go to a broker. If you get insurance from the bank and have any problems with it down the line the bank will quickly wash their hands of it and say it has nothing to do with them even though they pushed you into buying it in the first place. Ask them do you need to have a medical to get the insurance when they say no need ask them what will stop the insurance company paying out if there is a claim.
    Hi Sam Kade, you are better off going to a broker for life assurance, as they are independent and can look at all companies, if you go to the bank you are tied to their provider , and that provider might not be the best, I found this out my self only last week when I got my broker ( Anita Cambie) to review all of my policies, she saved me money on like for like cover. .. so brokers are the way to go!!!


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    #7
    coylemj
    Registered Users Posts: 25,435 ✭✭✭✭coylemj


    cena wrote: »
    So I had a meeting the bank during the week reviewing a few thing for me and going through stuff.

    One thing that came up was some sort of life insurances.

    Is it a good idea for a young lad to have.

    Was it the bank who invited you in for a 'review'? If so, it was done for no other purpose than to make commission for the local branch's life rep. When they have you sitting down you are a sitting duck for a sales pitch for all sorts of products, especially life insurance and serious illness cover.

    Your branch manager comes under pressure from time to time from his/her regional boss to increase sales of insurance products, a highly profitable side of the business. They way they tackle this is to invite customers in for a 'review' whereupon the customer finds himself face to face with a life insurance sales rep. who's only job is to sell that bank's financial products.

    Can you describe the 'savings account' they tried to get you to open - by any chance was this a savings scheme tied to a life policy?

    If you have no dependents then you do not need life insurance. When/If you buy a house you can take out term life insurance to cover the mortgage and you can take out a similar policy if/when you acquire any dependents. The type of life policy the bank try to sell to you is all about making commission for the sales staff and it may not be the right type of policy for you. Even if you do need life insurance, I agree with the earlier poster who said you should go to a broker and he/she will be able to find a policy that's right for you.


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    #8
    skippy2
    Registered Users Posts: 393 ✭✭skippy2


    Agree with all above you only really need life Ins if you have dependants and a mortgage
    The amount of people with Life Ins who do not need it is unbelievable
    Never buy anything off a bank they are trying to push you
    If you do need it buy from a broker or direct from Ins company
    treat Banks like they have treated customers for years
    Only use them when you have to and never trust them


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    #9
    cena
    Registered Users Posts: 10,021 ✭✭✭✭cena


    Sam Kade wrote: »
    Life insurance and banks don't work. First off all they want is your hard earned money. If you are getting a mortgage it is not compulsory to get life insurance with it even though the bank will make you believe otherwise. If you decided that you need insurance you can go to a broker. If you get insurance from the bank and have any problems with it down the line the bank will quickly wash their hands of it and say it has nothing to do with them even though they pushed you into buying it in the first place. Ask them do you need to have a medical to get the insurance when they say no need ask them what will stop the insurance company paying out if there is a claim.

    I was told I would have to go for a medical


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    #10
    cena
    Registered Users Posts: 10,021 ✭✭✭✭cena


    coylemj wrote: »
    Was it the bank who invited you in for a 'review'? If so, it was done for no other purpose than to make commission for the local branch's life rep. When they have you sitting down you are a sitting duck for a sales pitch for all sorts of products, especially life insurance and serious illness cover.

    Your branch manager comes under pressure from time to time from his/her regional boss to increase sales of insurance products, a highly profitable side of the business. They way they tackle this is to invite customers in for a 'review' whereupon the customer finds himself face to face with a life insurance sales rep. who's only job is to sell that bank's financial products.

    Can you describe the 'savings account' they tried to get you to open - by any chance was this a savings scheme tied to a life policy?

    If you have no dependents then you do not need life insurance. When/If you buy a house you can take out term life insurance to cover the mortgage and you can take out a similar policy if/when you acquire any dependents. The type of life policy the bank try to sell to you is all about making commission for the sales staff and it may not be the right type of policy for you. Even if you do need life insurance, I agree with the earlier poster who said you should go to a broker and he/she will be able to find a policy that's right for you.

    No it was not tied into anything. I was just stuff they were going through. They just said there was too much money in the account and would I ever think of opening a savings account. They went through the rates etc for a savings account


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    #11
    Liam D Ferguson
    Registered Users Posts: 542 ✭✭✭Liam D Ferguson


    There is some merit in the idea of not having all your money in a current account. While accessible, a current account pays no interest. So if you have savings, keep them in a separate account. Perhaps a 30-day notice account where you can access them with 30 days' notice if you want. But like everything else, shop around for the best deposit rate - don't just open it with your own bank. There's a Best Buys list of interest rates on Askaboutmoney.com here.

    I agree with everyone above who said that you don't need life insurance unless you have dependents or debts or both.

    You generally don't need to do a medical with life insurance unless there's a medical issue the life insurance company wants to check out or you're applying for a substantial amount of cover.


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    #12
    Rebel1977
    Registered Users Posts: 802 ✭✭✭Rebel1977


    coylemj wrote: »
    Was it the bank who invited you in for a 'review'? If so, it was done for no other purpose than to make commission for the local branch's life rep. When they have you sitting down you are a sitting duck for a sales pitch for all sorts of products, especially life insurance and serious illness cover.

    Your branch manager comes under pressure from time to time from his/her regional boss to increase sales of insurance products, a highly profitable side of the business. They way they tackle this is to invite customers in for a 'review' whereupon the customer finds himself face to face with a life insurance sales rep. who's only job is to sell that bank's financial products.

    Can you describe the 'savings account' they tried to get you to open - by any chance was this a savings scheme tied to a life policy?

    If you have no dependents then you do not need life insurance. When/If you buy a house you can take out term life insurance to cover the mortgage and you can take out a similar policy if/when you acquire any dependents. The type of life policy the bank try to sell to you is all about making commission for the sales staff and it may not be the right type of policy for you. Even if you do need life insurance, I agree with the earlier poster who said you should go to a broker and he/she will be able to find a policy that's right for you.

    I agree with you, all about making money, better off spreading not good to have mortgage/savings/life insurance etc with one institution


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    #13
    coylemj
    Registered Users Posts: 25,435 ✭✭✭✭coylemj


    cena wrote: »
    No it was not tied into anything. I was just stuff they were going through. They just said there was too much money in the account and would I ever think of opening a savings account. They went through the rates etc for a savings account

    If you don't run your current a/c down to almost zero each month then you would be better off putting the excess cash into a deposit a/c and get some interest on it, that was good advice.


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    #14
    cena
    Registered Users Posts: 10,021 ✭✭✭✭cena


    cena wrote: »
    No it was not tied into anything. I was just stuff they were going through. They just said there was too much money in the account and would I ever think of opening a savings account. They went through the rates etc for a savings account

    I wouldn't feel right moving the money from bank of ireland.


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    #15
    coylemj
    Registered Users Posts: 25,435 ✭✭✭✭coylemj


    cena wrote: »
    I wouldn't feel right moving the money from bank of ireland.

    Weren't they just suggesting that you move the excess money from the current a/c (where it gets no interest) to a deposit a/c in the same bank (where it does)?

    I don't get the 'from Bank of Ireland' reference - where did they want you to move the money to?


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