Banks and Home Lenders rely on customers inertia to make profits. Are you paying over the odds?
At The Insurance Doctor we constantly review our customers Mortgage Protection and Financial Protection arrangements. We constantly find that the monthly repayments for the insurance cover can be reduced in most cases.
In most cases it appears that Banks and Homeloan lenders rely on their customers’ inertia and trust to charge more for their cover than they need pay. This is incredible particularly since there has been a price war for this business in the last 2 years.
What is mortgage protection?
Mortgage Protection cover is a compulsory purchase in the Irish market for home owners under the age of 50. Mortgage Protection repays the outstanding balance of your mortgage loan balance, if the borrower/borrowers die prematurely during the mortgage term.
The best way to explain this is by taking you through an example:
- Customer paying €75.00 per month for a typical Mortgage Protection cover for €150,000 mortgage.
- Original term of loan 25 years.
- Now has 18 years to run.
- Mortgage protection policy bought from a leading brand home loan lender.
- Market research: New cost for customer reduced to €42.33 p.m. for same cover over balance of mortgage term.
And the best bit!
Monthly savings : € 32.67
Annual savings : €392.04
Total savings over 18 years : €7.056.72
How easy is it to change your Mortgage Protection? Very Easy – I do Everything for you!
At The Insurance Doctor we provide an easy to understand method of change. We negotiate the change for you with your home loan lender. Changing your mortgage protection policy should be done to save you money.
If you find the cost is lower why not have a not have a chat with the Insurance Doctor – I’m here to help you!
Why should you review?
- When your mortgage was on interest only basis, loan was not being reduced and your lender stipulated that your mortgage protection cover was to be fixed at the loan level. The only way this can be arranged is to have the mortgage Protection cover fixed throughout the term of the mortgage.
- Now that the loan capital is being repaid the amount of loan balance is reducing. The mortgage protection cover should also reduce in line.
- Because of insurer charges less to your to pay out a lower coverage during the mortgage term the monthly premium the customer pays will be reduced.
Remember though, if you have health issues or are undergoing medical treatment those need to be discussed with The Insurance Doctor as in some cases the Insurer may wish to charge a higher premium.