AM Financial explains how to assign a new life policy to your mortgage provider.
Why am I reading this?
Savings can be made from replacing the existing life policy on your mortgage (your mortgage protection policy).
Why are savings generally possible?
Very often the initial mortgage provider (typically a bank) was involved in arranging your life insurance policy at the time you were arranging your mortgage. The bank is often tied to one insurance company and it is this company they use for your life insurance policy. AM Financial has access to all the major insurance companies in the Irish market and can likely find you a more attractive life insurance quote.
Ok, that was easy. AM Financial has found me a cheaper life insurance quote. What next?
Your new (cheaper) insurance company will send you your policy schedule with your life policy details. Send this and a completed Notice of Assignment to your bank. You are nearly done then. Easy!
What is a Notice of Assignment?
The Notice of Assignment form is available from your mortgage lender. It is signed by you and confirms your agreement to assigning the life policy to your mortgage lender. This means that if you die, the proceeds from the life insurance policy are used by your mortgage lender to pay down your mortgage.
Once the Notice of Assignment form is signed by you, the bank sends it to your (cheaper) insurance company. The insurance company then informs the bank that their interest in the life policy has been noted.
Your (expensive) life policy can be cancelled.
What do I do next ?
AM Financial can get you a leading market quote for your mortgage protection policy. In the likely event that savings can be realised, AM Financial will guide you through the process of replacing your old policy.