Mortgage Protection Insurance

Mortgage Protection Insurance

  • Helping you secure your family’s home

All mortgage loan offers will include mortgage protection as a standard condition. Should you have children or anyone else depending on your income then we can help you assess how much additional life cover you need, we provide quotations from 6 different life assurance companies so that you get suitable advice and value for money.

>> What is Mortgage Protection Insurance?
>> How does Mortgage Protection Insurance work?
>> Do I need Mortgage Protection Insurance?
>> How much does Mortgage Protection Insurance cost?

What Is Mortgage Protection Insurance?

Mortgage Protection Insurance is a life insurance policy that all banks in Ireland require you to have when taking out a mortgage on your family home.

Like most people, your mortgage is probably your largest financial burden. The purpose of a Mortgage Protection Insurance policy is to provide a lump sum of money to repay the outstanding balance on your mortgage, should you die within the specified term.

A Mortgage Protection Insurance policy will not pay out for any reason other than death. In most cases your Mortgage Protection Insurance policy will be assigned to your mortgage lender, as security for your mortgage loan.

How Does Mortgage Protection Insurance Work?

You can arrange Mortgage Protection Insurance as a single life policy, or on a joint life basis.

  • Single Life Policy: Taken out by one person and is payable on their death during the term of the policy.
  • Joint Life Policy :  Taken out by two people and is payable on the first death during the term of the policy.

Unlike other types of life insurance policies, a Mortgage Protection Insurance policy is specifically designed to repay the outstanding mortgage balance owing at the time of death, with no additional lump sum pay out.

At the beginning of your mortgage your level of cover is at its highest. Your benefit decreases over the term of the policy as the amount owing on your mortgage decreases.

One disadvantage to this type of insurance is that the premium each month remains the same while your cover decreases.

√ A lump sum payment to cover your outstanding mortgage balance on death. X Loss of salary due to redundancy, illness or any other reason.
X Lump sum payment on diagnosis of specified illness.
X Suicide occurring within the first 12 months of the policy start date.
X Death due to a pre-existing medical condition which was not disclosed upon application.

Do I Need Mortgage Protection Insurance?

A Mortgage Protection Insurance policy is compulsory for anyone taking out a mortgage in Ireland on their family home. It provides great peace of mind knowing that should you die, your mortgage will be repaid and those left behind will not have to carry such a financial burden.

A Mortgage Protection Insurance policy offers you:

  • Straightforward Life Cover to cover your home loan at the cheapest possible cost.
  • The option of choosing additional security by selecting Specified Illness Cover.
  • Immediate peace of mind and protection. You should however seriously consider additional cover especially if you have either dependents or other loans (in addition to your mortgage).

How Much Does Mortgage Protection Insurance Cost?

The cost of a Mortgage Protection Insurance policy varies from person to person and depends on a number of factors, including:

  • The amount of cover you require.
  • The term of the policy (equal to the term of your mortgage).
  • Your smoking status.
  • Your age.
  • Your health and medical history.

How Can I Get Further Information on Mortgage Protection Insurance?

For further information on Mortgage Protection Insurance or for a competitive quote, email us .