Mortgage Protection: Payout would be more than balance

veryangryman

So ive been chucking extra money at the mortgage last few years and noted that the balance on hello.ie of what theyd pay if the worst happens is consistent with me simply paying the agreed payments.

Should i inform them? See if i can get premium down or whats the way to go? Do nothing?

NIMAN

Seems strange.

When I was overpaying my mortgage, and the payout was larger than what I owed, they said they would pay out the higher figure.

ANXIOUS

They would pay out the higher amount, the language in the OP is just slightly confusing. What he is saying is that the level of cover is the same as if he was just making normal repayments I. E. Higher than what is outstanding.

Xcellor

veryangryman wrote: »

So ive been chucking extra money at the mortgage last few years and noted that the balance on hello.ie of what theyd pay if the worst happens is consistent with me simply paying the agreed payments.

Should i inform them? See if i can get premium down or whats the way to go? Do nothing?

I stopped paying mortgage payment insurance and instead diverted the money into overpaying mortgage to build up a cushion. Maybe I'll never need it but in that case the mortgage gets paid off quicker.

Mortgage protection seemed like throwing money down the drain.

coylemj

veryangryman wrote: »

Should i inform them? See if i can get premium down or whats the way to go? Do nothing?

You can't lose anything by asking them.

If they or you do nothing and if the worst (as you describe it) happens, they wll pay the amount insured so your bank will be paid the outstanding balance of your mortgage and the surplus will go to your next of kin.

If you want the premium reduced and they refuse to lower the cover, you can always walk - take out a new policy for the current balance. You can get online quotes from all of the life companies. You just need to get the interests of your bank noted on any new policy.

Henry Ford III

Xcellor wrote: »

Mortgage protection seemed like throwing money down the drain.

It's not. It's valuable protection should the worst happen. It's also normally mandatory.

Xcellor

Henry Ford III wrote: »

It's not. It's valuable protection should the worst happen. It's also normally mandatory.

Oh sorry was confused with mortgage payment insurance/income protection. Yeah you need policy to cover death