Hi Nick,
Three insurers are offering the same quote. Which should I choose?
Jake
Most people just pick the cheapest when they compare mortgage protection quotes. There’s nothing wrong with that. But in Jake’s case, three insurers have offered him the same quote, so what should he do?
How to compare mortgage protection quotes
Using Jake’s example above, we can see that price is not an issue as three insurers are quoting €59.57. What other factors should you use to make your decision?
FREE benefits offered by the insurers:
On our quote system, I have put a link to a handy mortgage protection comparison chart. You should open it and refer to it as you go through this article.
You can compare mortgage protection quotes through the free benefits available on their policies.
Life Events Option (LEO)
This gives you the option to increase your mortgage protection policy without health questions. The insurer must offer you cover even if you health has suffered since you first took out your policy.
Here’s how one of my clients used the LEO to increase her mortgage protection without a medical.
All the insurers offer the life events / guaranteed insurability option apart from Friends First.
Children’s Cover
No parent wants to think about the death of a child. But if that awful event happens, wouldn’t it be better to have funeral costs covered?
Most of the insurers offer free children’s life insurance as part of their policy. On the death of a child aged between 3 months and 18 years (21 if in full time education):
That’s why most of the insurers offer free children’s life insurance as part of their policy. On the death of a child aged between 3 months and 18 years (21 if in full time education):
New Ireland pay out €4,000 (they will pay up to €25,000 on a serious illness claim for your child )
Royal London pay out €5,000 (they will pay up to €25,000 on a serious illness claim for your child )
Friends First pay out €5,000 (they will pay up to €20,000 on a serious illness claim for your child )
Irish Life pay out €6,000 ((they will pay up to €25,000 on a serious illness claim for your child)
Aviva and Zurich Life don’t offer children’s cover on their mortgage protection policies
Waiver of Premium
Zurich are the only insurer that will pay your premiums if you’re out of work.
If you’re disabled for a period longer than 13 weeks, you won’t have to pay premiums. This avoids the awful situation where the children may lose their home on the death of an ill parent.
This benefit costs an extra 5% of your premium at other insurers. It’s free at Zurich.
Accidental Death Benefit
Once the insurer receives your completed application form, you’re covered for Accidental Death.
If you die because of an accident before your policy issues, they will pay out up to €150,000.
Royal London do not offer accidental death benefit, the others do
Medical Second Opinion
This gives you access to an independent review of your diagnosis and treatment plan. Your children and your parents can also use this service.
Aviva and Irish Life offer this free medical second opinion.
Access to Medcare and to Best Doctors can be removed at any time so if you need it in the future, it may not be available.
Reinstatement Clause
Zurich are the only insurer to insert a “reinstatement clause” into every policy.
This is a very important benefit that has helped some of our customers keep their cover when they had forgotten to pay their premiums due to the shock of a sudden illness.
If you miss a payment, Zurich gives you 3 months to pay your outstanding premiums and put your policy back in place even if you have suffered an illness in those three months.
Other companies would cancel your policy and make you reapply all over again.
EXTRA PREMIUM benefits offered by the insurers:
You pay a little bit extra to avail of the following benefits:
Dual Life Mortgage Protection
Friends First are the only insurer offering dual life mortgage protection.
Mortgage Interest Rate Guarantee
Friends First will clear the outstanding balance on your mortgage regardless of interest rate. With other insurers, there may be a balance to be paid before your bank passes ownership of your home.
Convertible Mortgage Protection
Allows you to change your mortgage protection policy into a life insurance policy. New Ireland are the only insurer with this benefit.
So what should Jake do?
Jake has the same quote from Aviva, Zurich and Royal London. Let’s compare what they offer:
Aviva : Second opinion, accidental death benefit, no children’s life cover
Royal London : Children’s life cover, no accidental death benefit, no second opinion
Zurich : Waiver of premium, reinstatement clause, accidental death benefit, no children’s life cover, no second opinion.
Jake has three children yet I recommended the Zurich Life policy that doesn’t have children’s life cover.
Why?
Because Jake took out a separate life insurance policy to take care of his family.
Zurich offer children’s life cover of €6,000 for free on their life insurance policies.
Your turn…
Do you find it difficult to compare mortgage protection quotes? I hope this article has helped you. But if you would like some guidance I’d be glad to help.
Complete the short form below and I’ll be in touch.
Nick McGowan
LION.ie | Specialist Life Insurance Advisors
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