Mortgage Life Assurance

DocMcStuffins

Hi all,

Am hoping someone can help me out with this.

When we took out our mortgage 8 years ago, we signed up to BOI's Life Assurance that went along with it. As far as I know, this allows us life assurance for the lifetime of the mortgage. It is currently 50 euros a month (total for the 2 of us). Our mortgage was around 300K. I am interested in finding out if I can get this cheaper or if this is considered a good price. I guess I can ring round other life assurance companies and get a quote and you are not tied to the bank's one just because you took out the mortgage with them?

Thanks so much.

Alan152

Hi Docmcstuffins

Of course this can be gotten cheaper as I do not believe that BOI are the cheapest on the market at present. A couple of factors need to be considered though. if your health situation has changed since the policy was taken out (potential Factor). is the current life assurance of a level nature or does it decrease with the mortgage?

Life assurance does need to be in place but it is not a requirement to purchase this with the mortgage provider. What you need for a quote is both names, DOB's, smoker status, amount required and term remaining. Be careful as make sure you compare like with like if it is cheaper elsewhere. I currently know who are the cheapest on the market, also price matching goes on also for competitiveness.

Let me know if you have any questions.

DocMcStuffins

Thank you Alan for that, much appreciated.

Trish56

Hi DocMcStuffins,

When you took out your mortgage 8 years ago it would have been a condition of loan approval that you take out a mortgage protection policy - this policy would clear the balance outstanding on the mortgage should either of you die with the term of the mortgage. A monthly premium of €50 looks expensive for mortgage protection so perhaps the bank sold you a level term or dual cover.
Premiums have reduced on life cover over the past number of years. You need to find out exactly what cover you have in order to compare like with like. Premium would also have depended if you were smokers at the time or had any health issues.
If you just want a straightforward mortgage policy you need to ring your lender and find out how much is outstanding on your mortgage and the term and then get a quotation.
Trish

DocMcStuffins

Thanks Trish.
As a first step, I will contact BOI and find out the exact details so then I can ring around.
My husband was a smoker at the time, but has been off them for 6 months now. I saw somewhere he doesn't qualify as a non-smoker until he is off them for 2 years though.
But surely things have got a lot more competitive since 8 years ago - there's bound to be some better offers out there.
Thanks again.

Trish56

Hi DocMcStuffins
Your husband needs to be off the cigarettes for 12 months to be given non smoker rates, this will greatly reduce the monthly premium.
Trish56