Survey shows varying cost of life insurance

A new survey on the cost of life insurance and mortgage protection shows differences in monthly rates between providers can add…

A new survey on the cost of life insurance and mortgage protection shows differences in monthly rates between providers can add up to significant savings over the term of a policy.

The survey by the financial regulator IFSRA shows smokers pay considerably more for life insurance, even at a young age.

In one case a 26-year old male smoker will pay an average of €1,500 more over a 20-year period than a non-smoker for mortgage protection on a €250,000 mortgage.

But while smokers pay more than non-smokers, the survey maintains there are still significant savings to be made.

READ MORE

"The extent of the saving depends on the age and gender of the consumer," it says.

A 36-year old female could pay as little as €21 per month for life insurance of €250,000 over 20 years.

IFSRA says consumers who already have life or mortgage protection insurance can switch provider at any time.

Consumer Director, Mary O’Dea said: "Most people only think about life insurance when they get their first mortgage."

Ms O’Dea said: "When you take out your mortgage, you must have mortgage protection insurance in place, which is a life insurance product that pays off your mortgage if you die during the term."

She said: "However, you are not obliged to buy mortgage protection from your mortgage lender or broker, so compare what other providers are offering."

"Whether you have existing mortgage protection or are looking for cover for your first mortgage look around to see if you can get a better deal elsewhere," she added.