People can save more than €5,600 on life and mortgage insurance by shopping around, according to a study.
The National Consumer Agency (NCA) Life Insurance Comparison survey found that consumers can make savings of up to €3,087 on mortgage protection insurance and couples could potentially save up to €5,687 on dual term-life insurance and €3,881 on joint mortgage protection insurance.
The survey pointed out that “small differences” in monthly premium payments can result in significant savings over the term of the policy.
The survey also showed that smokers continue to pay a high financial cost for their habit — on average 85% more for life insurance.
The NCA examined six of the main insurance companies operating in Ireland. Four profiles were used to gather quotes on term life insurance, mortgage protection insurance and whole-of-life insurance.
The most significant differences on costs were:
* €5,687 over the life of the policy, or a difference of €13.54 per month, for a 23-year-old couple, who both smoke, seeking dual term life insurance cover of €350,000 for 35 years;
* €3,881 over the life of the policy, or a difference of €9.24 per month, for a 23-year old couple of non-smokers, seeking joint mortgage protection insurance of €350,000 for 35 years;
* €2,363 over the life of the policy, or a difference of €13.13 per month, for a 45-year old smoker seeking term life insurance cover of €190,000 for 15 years;
* €1,135 over the life of the policy, or a difference of €6.31 per month, for a 45-year-old non-smoker seeking term life insurance cover of €190,000 for 15 years
Director of consumer contacts and insights at the NCA Fergal O’Leary said it was important consumers do their research before taking out long-term insurance policies.
“With such large savings possible we strongly urge that, before you take out cover you should first compare the quotes from a number of companies and/or brokers. While it may be viewed as difficult or not worthwhile, it is also possible to change your life insurance during the term of your mortgage.”
The NCA research also looked at how changes in relation to mortgages may impact on mortgage protection or term life insurance.
It found that if there is a change to the original mortgage, the existing policy may not be sufficient.
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