Mortgage Life cover help

D3PO

Ok long story short I recently looked at my mortgage cover as Im paying in my opinion a ridiculous amount monthly (€44 odd)

I noticed a few things firstly I ahve specified illness cover and second Ive found that with the assumed interest rate on my table of benefits my cover is significantly more than my outstanding mortgage.

I know both are still of benefit to me but really I dont want to be over covered or want specific illness cover.

I rang Irish life and they tell me that I cannot modify my policy which is fair enough I suppose and that I would have to create a new policy.

Great I have no issue with that, so I asked them to go create me a new policy now with what cover I wanted and they refused to telling me I had to go back to my broker and that I cannot cancel my current policy until they get AIB's permission to do so.

Surely I should be able to create a new policy myself. It seems to me they are trying to make things as awkward as possible to actually change my policy.

Can anybody explain to me is this is normal as the lady on the phone was very abrupt tbh.

killers1

D3PO wrote: »

Ok long story short I recently looked at my mortgage cover as Im paying in my opinion a ridiculous amount monthly (€44 odd)

I noticed a few things firstly I ahve specified illness cover and second Ive found that with the assumed interest rate on my table of benefits my cover is significantly more than my outstanding mortgage.

I know both are still of benefit to me but really I dont want to be over covered or want specific illness cover.

I rang Irish life and they tell me that I cannot modify my policy which is fair enough I suppose and that I would have to create a new policy.

Great I have no issue with that, so I asked them to go create me a new policy now with what cover I wanted and they refused to telling me I had to go back to my broker and that I cannot cancel my current policy until they get AIB's permission to do so.

Surely I should be able to create a new policy myself. It seems to me they are trying to make things as awkward as possible to actually change my policy.

Can anybody explain to me is this is normal as the lady on the phone was very abrupt tbh.

Hi D3PO,

Your policy is assigned to AIB so they are the legal owners and any claim on death or SI will be paid to them to reduce the mortgage debt o/s. There is nothing preventing you from taking out a new policy covering the amount and term remaining on your mortgage. Once the new policy is activated you'll need to give it to AIB and they will then release their interest in the current policy and you'll be able to cancel it. This is easily done without any overlap in premium payments.

D3PO

Thanks Killian the bit Im annoyed with and really want clarification on is why I could not create a new policy with them and that they told me I had to go back via my broker (whom Ive had nothing to do with in 9 years)

either way Irish Life have now shot themselves in the foot. Ive got a life qoute elsewhere and submitted the paperwork this morning. Once cover is confirmed and the subsequent paperwork is sent into AIB I will be cancelling my Irish Life cover so their inflexibility has just cost them a customer.

phormium

I think what they mean there is you need to go through some type of intermediary/broker/agent etc, their head office which I presume you were on to do not actually do sales, more the processing side of it.

D3PO

phormium wrote: »

I think what they mean there is you need to go through some type of intermediary/broker/agent etc, their head office which I presume you were on to do not actually do sales, more the processing side of it.

its a pity the lady on the phone was so abrupt so. It wouldnt have been difficult for her to explain that, give me the number or transfer me to the relevent department / office. She wanted nothing more than to get me off the phone, left a very very bad taste in my mouth tbh.