Life Cover/Mortgage Protection

Leftwaffe

Hi Guys,

Would appreciate some help here. Currently at the final hurdle with AIB for mortgage drawdown on a self-build home. Both me and my partner need life cover in order to seal the deal. We are both 30yo and we have 2 small kids. Zero health issues. What should I be looking out for here considering our circumstances? Any fine details to be aware of?

I have a quote from FBD for just mortgage protection/decreasing term assurance (€29p/m) and another quote from them for dual life convertible term assurance (€52p/m). I'm assuming the dual life cover is far better but is it necessary at this point? I really am useless when it comes to insurance, etc and don't fully understand it so all advice is appreciated. Explain like I'm 5!

Thank you.

Jim2007

There are two aspects to this, one is the need to meet the minimum requirements needed to satisfy your mortgage application and the other is the need for some general financial planning. And it's pretty well impossible to say what is the best product for you without known your general financial circumstances.

As an adult with significant financial responsibilities it's a good idea to sit down and figure out how you'd be situated if you became incapacitated or even died. In both case there would obviously be state support, but would it be sufficient particularly in the case of become incapacitated, for instance you might want the flexibility of having some money around to make alterations to the house to make it easier for a handicapped person to get around and so on. Or how you'd manage to cover childcare etc, if one of you became incapacitated etc... If you are in a company pension you may find that it also offers some benefits towards incapacity. You may well find that at the end of such a review that you are adequately covered and only need the minimum for a mortgage or you may conclude you need something else and that may or may not be the alternative policy on offer.

Leftwaffe

https://www.boards.ie/discussion/comment/119374208#Comment_119374208

Thank you for this. I will have to sit down and take a look at it. I have salary protection in work and I am paying into a pension also so I will have to take this into consideration. I just don't want to be sold something I don't need by someone who tells me I need it.

Henry Ford III

I'd advise give the lender the minimum to satisfy their interests.

Keep family cover separate.

macvin

if one of you dies before the end of the mortgage term, the mortgage is paid off, thus the surviving person does not have to worry about mortgage payments.

It is something you have to get unless you are entitled to an exemption

https://www.ccpc.ie/consumers/money/insurance/mortgage-protection-insurance/

Go for the standard decreasing term option.