Waste Of Money? (Expensive Life Insurance)

paul7g

Hi, I am in the process of buying a house, and one of the particulars required is Mortgage Protection insurance. The broker has also upsold Life Insurance to me too.

- Mortgage Protection: €95pm
- Mortgage Protection w/ Life Insurance: €480

€480 is a lot per month on top of my mortgage, and a couple of people have told me to just go for the Mortgage Protection only.

Interested to know others views on this, as I’m completely new to the property world.

Thanks for your help.

lawred2

480 per month for life assurance?

That sounds nuts. Ours is €50 per month for level cover for the two of us.

Either you're high risk or You're seeking to insure for a lot of money!

Any chance that that was an annual premium?

kippy

paul7g wrote: »

Hi, I am in the process of buying a house, and one of the particulars required is Mortgage Protection insurance. The broker has also upsold Life Insurance to me too.

- Mortgage Protection: €95pm
- Mortgage Protection w/ Life Insurance: €480

€480 is a lot per month on top of my mortgage, and a couple of people have told me to just go for the Mortgage Protection only.

Interested to know others views on this, as I’m completely new to the property world.

Thanks for your help.

Both of those quotes look extremely expensive, unless there is some major health or loading issues going on due to age etc. I would shops around for both products. The bank will require mortgage protection. Whether you need another policy on top of that is very Dependant on your own circumstances and what else you have in place. But either way those prices look fair high.

Plumbthedepths

paul7g wrote: »

Hi, I am in the process of buying a house, and one of the particulars required is Mortgage Protection insurance. The broker has also upsold Life Insurance to me too.

- Mortgage Protection: €95pm
- Mortgage Protection w/ Life Insurance: €480

€480 is a lot per month on top of my mortgage, and a couple of people have told me to just go for the Mortgage Protection only.

Interested to know others views on this, as I’m completely new to the property world.

Thanks for your help.

The bank only wants the mortgage covered in the event of your passing or anyone else named on the mortgage. Cancel the 480 policy it's not worth it. Take out a separate life policy if you can afford it.
Plus you can organise your own mortgage protection you are not obligated to go with the banks policy and it is illegal for the bank to imply you may not get the loan if you refuse their policy.

Samuel T. Cogley

Agree that is absolutely nuts.

paul7g

Thanks all.

I’m early 30’s with no major health problems.

Wesser

I think my mortgage.protection is 15 e pm

KilOit

Does your broker look like Delboy?
Just get mortgage protection. get life insurance elsewhere if you have kids etc

paul7g

KilOit wrote: »

Does your broker look like Delboy?
Just get mortgage protection. get life insurance elsewhere if you have kids etc

Haha, no kids.

This house business is no plain sailing :-)

accensi0n

Those are more like cheap yearly figures. You'd want the life assurance for the heart attack from having to pay that much per month.

L1011

The only justification for those figures would be if your mortgage is for seven figures really. My mortgage protection is 9.90 a month!

I would drop that broker entirely and look elsewhere. Recommendations by PM only (if the OP wants them)

NIMAN

paul7g wrote: »

Thanks all.

I’m early 30’s with no major health problems.

Then there is something wrong or you aren't quoting just for mortgage and life protection.

Gumbo

paul7g wrote: »

Thanks all.

I’m early 30’s with no major health problems.

Shop around!
We paid €24 for our mortgage protection in our early 30’s. Non smokers in god health etc

s7ryf3925pivug

You can ask the bank to make an exception to the requirement if you can demonstrate three rejections or unreasonable quotes.

We had awful trouble getting any offer at all and the bank provided us with the exception for my wife, though we finally got a reasonable quote around the same time and didn't need it (100% loading). Worth mentioning that I'm sole breadwinner and the exception was only for my wife so it seemed like a no-brainer to offer it un our case.

Laya do not do loading, so if you want to take that path you can get a quick rejection from them. You might be waiting quite a while for insurance companies to complete their research on you. It delayed us months in buying our house.

odyssey06

The figures dont make sense.

But when you get real quotes dont dismiss life insurance even though more expensive. If you think you will trade up in future you would have to take out new mortgage protection policy and go through medical checks etc

odyssey06

Make sure none of the quotes are for a mortgage payment protection policy which claims to cover redundancy, serious illness where you cannot pay mortgage in that period.
That is not needed for mortgage from bank.

Vim Fuego

Does that include long term illness and income continuance protection as well maybe? The latter is expensive but can be claimed against your tax iirc. Even then, 400 a month can’t be right.

A few years back, my wife and I had a life assurance plus serious illness cover and it was €74 p/m for both of us in our early 30s.

SozBbz

You only need the mortgage protection to satisfy the bank. Depending on the size of your mortgage, I'd expect that to be 15-40 per month. Its slightly more expensive if you're not married as you effectively have to insure the mortgage and any inheritance tax that might be due if only one of you dies (fun/morbid thought for the day).

The rest is up to you.

Also, €480 must be an annual quote, otherwise its ridiculous.