Was in with the bank looking at getting a mortgage as I/we want to buy – don’t want to rent forever. Setting aside all the valid economic reasons not to buy.
One thing that struck me as very odd is, I can get insurance to drive a car around everyday with the potential to easily cause 60K of damage for an accident involving a car with two passengers with whiplash…. for under 400 euros
Mortgage protection insurance with cover up to one-year’s repayments costs 1320 a year, circa 26K
…and can I add a further question (or two!) about mortgage protection…
Is it optional for those over 50?
Why so?
What alternatives are there for over 50s?
Can you get mortage protection if you have a medical condition?
moral hazard, nobody wants to get hurt in a car accident whereas there are plenty of people who would like six months off work.
increased number of claims – if the number of road accidents had quadrupled since 2006 you can bet your car insurance would cost a lot more
Guys are we gettin mixed up here?
It would seem we are possibly talking about two different products here
1/ Mortgage Repayment Protection ( pays your monthly mortgage payment for a year if you’re laid off etc)
and
2/ Mortgage protection (pays your mortgage in total if you die).
In answer to the first question the actuaries know that in the current climate there is a high likelihood that a lot of their customers will be laid off and therefore price the product accordingly ( this is not a charity they are in business to make money) also this is not a product that sells big numbers when the economy is ok so they’re gonna milk it to death.
The second question mortgage protection can be avoided by the over 50s if you wish although I wouldnt advise it as you are closer to death aged 50 than age 30. What alternatives are there and can you get mortgage protection if you have a condition. If you want answers to these go and see an authorised advisor as asking questions like these on an internet forum when they are obviously of interest or important to you then you need professional advice.
Oh and one of the reasons mortgage protection is cheaper on ocassion than mortgage repayment protection is nobody wants to die to claim the mortgage protection but theres a good chance you could have an accident or be laid off and have to claim the mortgage repayment protection.
this isn’t mortgage protection in the traditional sense (that pays on death), it is MRPP (mort repayment protection insurance) which pays your mortgage for up to a year if you lose your job, are sick, in an accident etc.
it is expensive based on the number of claims it has had against it, currently the cost is c. €9.50 per 100 of repayment, so if your mortgage costs €1,000 p.m. you’ll pay €95 to cover it. It isn’t mandatory
wouldn’t bother with it, sure won’t someone bail you out if you are unfortunate enough to suffer such bad luck…
Fee-fi-fo-fum do I smell the blood of a canny with a statement like that?
We really, really need that sarcasm smiley.
Naw, far from it my friend - sold in jan 2008 and now sitting here in a nice big rental watching and waiting 
Aye - too true I should have added this one after my post… 