You’re almost there.
The bank has eventually given you mortgage approval.
You’ve found your dream home.
The vendor has accepted your offer.
Now all you need to do is meet with your bank and buy their mortgage protection, right?
There are five primary reasons you should avoid the bank for mortgage protection.
1) The bank cannot offer the same cover as a broker
Hi Nick, Royal London had quoted €38.21/mo dual mortgage protection cover, and the bank promised to match that. This turned out to be basically a complete lie, and they issued a joint cover policy. So we want to cancel the bank-issued policy and start again. Brian
Toe-curling shenanigans here by the bank!
I’m scarleh for them having to resort to such sneaky tactics to hoodwink you into buying from them.
In good faith, Brian (now an ex-bank client 
) had agreed to their desperate “if you can find cheaper cover, we’ll match it” plea. All was good until he received his policy which was on a joint life basis, not dual life as promised. When Brian queried it, they had the temerity to try and fob him off. They insisted they had explained that they couldn’t offer dual life cover even though he had explicitly asked for dual cover. Colm is no fool, let me tell you.
So look, if the bank offers to match a dual life mortgage protection quote, they are lying.
They simply don’t have that product.
You’ll end up getting RIPPED OFF.
Update:
More recently, banks are taking a different, yet still shameless approach. They are trying to sell life insurance instead of mortgage protection. Why you may ask?
Well a) it costs more, so more premiums and commission for them and b) they can offer life insurance on a dual life basis so can match a broker’s price.
Be wary.
Remember you don’t need life insurance for a mortgage.
2) Your bank owns your policy if you buy from them
If you purchase mortgage protection from the bank group scheme, known as a block policy, the bank can cancel your policy should you ever switch your mortgage to a new bank in the future
The swine!
Let’s fast forward 5 years to 2023, there’s a new mortgage provider in Ireland offering tracker rates for the first time in forever. You want one, to get one you have to switch your mortgage.
You mention this to your bank which is full of apologies but explains that as you took out a block policy, they’ll have to cancel it should you redeem your mortgage.
The swine!
So you’ll have to reapply for mortgage protection all over again.
You’ll be older, which means you’ll pay more.
You may have suffered health issues which means you’ll pay even more.
If those health issues are severe, it may be impossible to get cover.
What happens then?
You’re stuck with your current bank and their rip off mortgage costing you €000’s extra per year.
As you can see, buying mortgage protection from your bank could have unforeseen repercussions down the line.
If you buy from a broker, you can take the policy with you even if you switch lender in the future. It’s your policy so you can assign it to any lender.
3) Banks can only offer mortgage protection quotes from one insurer.
Permanent TSB, KBC Bank, Ulster Bank, AIB, and EBS are all tied agents of Irish Life.
Those banks can only sell life insurance from Irish Life. They cannot advise on policies from
- Aviva
- Royal London
- New Ireland
- Zurich Life
Going with the bank gives you no choice, they force you to take whatever they offer no matter how crappy that policy is.
4) Banks don’t have access to dual life mortgage protection policies
You’ll be stuck with a joint life policy.
5) Banks sell you a policy, they don’t advise.
If you’re unmarried, did you know you should take out two single life policies to minimise inheritance tax?
Here’s a fun game…check if your bank advises you to take out two individual life policies, fair play, you’ve got a decent advisor.
If not, well, you know what to do.
6) What if the bank can’t offer you cover?
Your bank can’t apply to another insurer so you’ll have to go to a broker.
But because the bank has declined you, you’ll have to declare this on your new application. This will put the underwriters at the other insurers on alert affecting your chances of getting the best price.
The same applies if your bank applies a loading to your premium.
So what should you do if you’re worried about a health condition affecting your cover?
Use a broker who specialises in getting cover for clients with quirky health issues. 
We’ll get your cover from the most sympathetic lender at the best price with the least amount of hassle.
Over to you…
I’m here to guide you through the mortgage protection minefield.
If you’d like me to take a look at your overall situation and make a recommendation on how you should best protect yourself, complete this questionnaire.
Alternatively, if you’d like a chat, you can schedule a call here.
Chat soon
Nick McGowan
lion.ie | making life insurance easier
The post Broker or Bank for Mortgage Protection Quotes appeared first on Lion.ie.
