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 Post subject: Do you need Life insurance?
Posted: Fri Feb 28, 2014 11:39 pm
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Hi everyone. We have a premises (previously a business premises) that we now rent out as a private residence. We have always had joint life insurance set up in the case of either of us passing away (God forbid) that the mortgage would be paid for for the living spouse.
We also have our 'Home', where we live ourselves. We have another joint life insurance policy relating to our home. Can anyone tell me do we need to be paying out 2 separate joint policies?
Thanks a mil :)


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Posted: Fri Feb 28, 2014 11:43 pm
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Up to yourself or the bank if you have mortgages on both. If both are mortgaged then it is a condition of the loan that there is life cover, definitely on the house you live in mortgage. On rented premises it varies from bank to bank, some insist on cover, some let you sign a waiver if it is not the family home, however if anything happened either of you then the mortgage remains and continues to be paid by the rental income, at least that is the theory behind not having life cover on a rented property.


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Posted: Sat Mar 01, 2014 12:19 am
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Thanks for that. It's just very costly and the rental income doesn't cover mortgage on 1st property but yeah, if anything happened either of us, the other would still be liable for the mortgage repayments. Think I'll shop around a bit maybe to see if I can get a better deal as it's €83 a month for both of us . Thanks for your reply. Appreciated :)


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Posted: Sat Mar 01, 2014 10:04 am
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It's hard to know whether that is expensive or not without knowing all the relevant info such as amount, age, smokers? etc and whether or not the cover is joint, dual, level, decreasing, with or without critical illness cover?

The cheapest form of cover you can get is decreasing, joint, term, death cover only, this is a good one to use to compare costs as it is basic, you can then decide if it is worth upgrading. This type will simply pay off whatever is owing if a claim is made, for example if you die with one payment made on the mortgage it will pay out the full balance or if you die with one payment left to make (eg 29yrs 11mts into 30yr mtg) then all it pays out is the one payment left.

Try some of the online broker sites for quotes so you can get an idea of cost or a real live broker!

Be careful if there has been any health issues since the last policies were taken out, everything must be declared or it can have implications when claiming.


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