Mortgage Protection Insurance
When you take out a mortgage, your lender will often ask you to have life cover in place to ensure the remaining balance is repaid if you pass away during the mortgage term. Mortgage Protection is a cost-effective type of life insurance because the cover amount decreases as your mortgage balance reduces over time. For added peace of mind, you can enhance your plan by including serious illness cover. This extra protection ensures you’re covered for a range of specified serious illnesses, offering even more security.
With a Mortgage Protection plan, you’ll pay a monthly premium for the duration of your policy. The plan is designed to align with your mortgage, meaning the amount of cover gradually decreases (at a fixed rate) as you pay off your loan. Because the cover reduces over time, this type of life insurance is usually more affordable compared to plans where the cover remains constant. The cost of your Mortgage Protection plan depends on a few key factors:
- Your age
- Whether you’re a smoker or non-smoker
- Your current health
- Whether the plan is just for you or with a partner
- The size of your mortgage, how much cover you need
- Whether you include a conversion option
- Whether you add specified illness cover
- The term of your mortgage
A Mortgage Protection plan is a simple and affordable way to protect your loved ones and your home, giving you the freedom to enjoy life with confidence. Whether you’re looking for a single or joint policy, we’re here to help you find a plan that suits your needs. We compare quotes from top insurers like Zurich Life, Friends First, Royal London, Standard Life, and AVIVA, among others. We also offer competitive life insurance and income protection quotes. Review cover levels and prices online now and start saving!
Get an Affordable Mortgage Protection Quote Online Today!
Are you searching for cheap mortgage protection insurance? You have come to the right place. If you are looking to trade up on your family home or buy your first apartment, we aim to find you the best mortgage protection policy on the market. Please complete the online form with the following information.
- The level of cover required, for example, the loan amount approved by the bank.
- The age of the individual or applicants.
- The duration of the mortgage, for example, the term of the loan.
- Smoker or non-smoker. Please note smokers may have to pay a higher premium due to the added health risk.
After completing the proposal form, click “Quote Me” to compare mortgage protection insurance companies. Save time and money today; let us find the cheapest quote for you!
Frequently Asked Questions
What is mortgage protection insurance?
A mortgage protection insurance policy will pay off your home loan in the event of death. If you are looking for a property loan in Ireland, you will need mortgage protection cover in place before drawing down the funds. Mortgage protection is a specific type of life cover.
Is mortgage protection mandatory in Ireland?
As per Section 126 of the Consumer Credit Act 1995, the lender must make sure you have cover in place before you can draw down the funds. If you have a loan solely in your name, you will require a policy to cover your own life. On the other hand, if the mortgage loan is in joint names, the mortgage protection must be in joint names. The insurer will pay off the mortgage in the event of the death of either you or your partner.
What is a reducing term policy?
The level of cover on this policy reduces in line with the mortgage over the loan term.
What is a level-term insurance policy?
Level term insurance, the amount of coverage does not reduce over the term and will remain level. In other words, you will have the same level of protection throughout the mortgage term. The insurer will pay off the mortgage if you die, and the surplus lump sum will transfer to your estate.
What is the duration of the mortgage protection policy?
The policy should match the same term on the mortgage, whether that is 15, 20 or 35 years.
In the event of death, how does the policy work?
In the event of death, the insurer will pay the mortgage balance directly to the bank to clear the loan. If there is a surplus balance remaining, this will go to your estate.
What is a joint life insurance policy?
This insurance policy covers a couple or two individuals. For example, if one individual dies, the insurance company will pay the balance on the mortgage.
What is a dual life insurance policy?
This cover generally applies to life insurance contracts rather than mortgage protection policies. Similar to the above joint life policy, this product covers a couple or two individuals. A dual life insurance policy will pay out twice should both policyholders die during the term of the policy.
What is a guaranteed rate mortgage protection policy?
This product has a fixed premium for the full term of the insurance policy.
Do I have to purchase mortgage protection from the bank?
Most banks will offer insurance; however, it is entirely up to you. These include Allied Irish Bank, Bank of Ireland and Permanent TSB. Please note taking out insurance through the bank is not a loan condition. That is to say that the lender cannot decline the loan if you do not wish to take this cover. We would always advise you to shop around to get the best deal.
Unsure which protection policy to choose? No worries, Request a Callback today, and we’ll be happy to go through the details with you!