Extras & Benefits
Unlike Car & Home Insurance that have lots of extras or rider benefits, Mortgage Protection can be compared on price alone. It’s simple; the bank will require you to have life cover on your mortgage. This ensures that in the event of your death, the loan is repaid.
So, when shopping around the two most important pieces of information you need are a) how much do I owe the bank? & b) how long do I owe this money for? Once you have this information you can quickly assess and compare the market for the best price.
Banks not always best!
In the past banks & building societies have sold mortgage protection policies in conjunction with the mortgage. This is not always the cheapest way to put this cover in place. A bank is usually tied to one insurance company only, so you are not guaranteed the best price. If you took your policy out through the bank, it would be worthwhile to compare the cost with other providers.
Review your rating!
If you have been rated (charged an increase premium) for health issues, height & weight ratio or hazardous pursuits, you should get a 2nd opinion with another provider. Not all insurance companies think the same! Likewise, if you have a policy with a rating and your health has improved, reapply for the cover again. What’s the worst that can happen!
If you smoke, the insurance companies will class you as a higher risk and in turn charge you higher premiums than non smokers. Don’t worry though, if you haven’t smoked in more than 12 months, you should reapply for your cover. The insurance companies will now class you as a non smoker and you can avail of cheaper rates! Another reason to quit smoking!