Mortgage Protection
Mortgage protection is a specific type of life insurance and is usually compulsory to have if you are planning on buying your home through a mortgage provider. Your mortgage protection plan will pay off the outstanding balance on your mortgage if you become seriously ill or die.
Why do I need Mortgage Protection.
The reason you need it in place is It ensures that your family will not have the financial burden & stress of repaying the mortgage, should something happen to you. Most of us are living healthier lives nowadays. This has resulted in the insurance companies offering me & you better-priced mortgage protection.
Are you one of those people who took out a mortgage 10 years ago? There is a very good chance you are overpaying. Maybe it’s time for you to look into switching or at least finding out if you have a good deal or not. Remember your mortgage protection generally speaking decreases as your mortgage decreases.
Men & Women are now equals!
The insurance companies are no longer allowed to discriminate between women & men which believe it or not they use to but the other news is this has affected the price of your mortgage protection in the background.
More bad news for smokers.
Expect to pay near double the price if you are a smoker. You might have recently given up smoking & not sure if you are regarded as a non – smoker.
If you have NOT smoked in at least 12 full months you can apply for cheaper mortgage protection cover.
Switching mortgage protection cover.
Consider your options.
Do you plan to switch, you will need to complete a new health form application & you may also need a medical examination or GP’s medical report. The extent of the additional information to go along with your application depends on the level of cover you are applying for when switching. It may sound as if you have to do a lot just to switch but in general, it’s straightforward & you most likely find that it’s at least worth getting an independent broker ( not just with one insurer) to help you look into your options.
Assigned to your bank
Please note that your policy is most likely in “ownership” assigned to your bank” because if you die suddenly / prematurely they get the money & it does not become part of your estate.
Considered Changing, Now what?
OK, now you have considered changing, how do you go about doing it? We have put it out in easy to understand steps below which we hope is of help to you.
Step 1
You need to find out what is the amount owed on your mortgage & the term.
Step 2
Contact a mortgage broker in Meath & get the broker to quote you for your “Mortgage protection policy” now that you have the info from step 1 above already at hand
Step 3
This part involves a little time & effort. You will need to complete the application forms & then have the policy underwritten & a direct debit in place. By the way it will most likely be worth the effort even if you were to base it on what you will most likely save in 1 year mortgage protection never mind the many years after that. (simply try to look it at as an investment of time which will pay off very well)
Step 4
When you have all in place as per Step 3, write to your old bank & insurer outlining you would like to cancel your existing mortgage protection policy & give them your new policy & ask them to put it in place. Your'e nearly done, just one more step!
Step 5
The bank will then ask you to complete a new assignment form which will be the last step of completing your new policy.
Step 6 - Optional.
In the years ahead remind yourself of the money you have saved from your efforts which in total will only take a few hours & save you potentially a couple of hundred per year of your mortgage term. If you are not clear on any of the above or feel the above is something you will need help with in the near future, please do not hesitate to call us & we will gladly assist you in changing & completing your new policy.
We understand that there is a lot of information you need to consider & we believe in knowledge is power when it comes to choosing the right policy for you & your family.
If you feel you have more questions you need answering, why not check out our Mortgage Protection FAQ'S or contact us today.
If you feel you have more questions you need answering, why not check out our Mortgage Protection FAQ'S or contact us today.
