Bank or Broker. Who gives the best advice?
Updated: Oct 22, 2019
Everybody does it. You go to the bank for your mortgage because you bank with them and assume they will give you a better deal than any other bank. They then tell you that you must take out a Mortgage Protection Policy and they can help with that as well as the home insurance. You agree with everything because you are terrified they will refuse to give you the money if you dare look elsewhere for these policies.
The truth is the bank don't care who you take out the policy with and you are more than entitled to search the market for alternative quotes. The bank can only quote from one insurer, most of the time, Irish Life who are not competitive when it comes to life insurance.. A broker on the other hand can quote from up to 6 different insurers when it comes to Mortgage Protection and even more when it comes to home insurance. It goes without saying where you are going to get the best deal.
Its not just to do with the price; being impartial allows you to shop for the best product also; for example there is now Dual Life Mortgage Protection available from some of the companies and you won't be offered this by the banks. This is hugely valuable as it provides two payouts instead of one. Another reason for choosing a broker is that you will be the owner of the policy and can choose who it is assigned to and can take it with you in future if you decide to switch mortgage provider.
Besides Mortgage Protection there are other areas that need to be looked at to ensure you are financially safe. Once the mortgage is looked after there are still Life Insurance needs, Serious Illness cover, Income Protection, Pensions, Savings etc. Bank staff are under pressure for sales so they're not interested in making a lifelong customer of you by looking after your needs. A broker wants you as a customer for life and will be invaluable to you when it comes to making a claim.