Protect your mortgage, protect your home
Enjoy peace of mind knowing that any of your financial commitments will be taken care of.
Mortgage Protection in short...
- Mortgage Protection is normally a legal requirement by your Mortgage provider before you will be allowed draw down your Mortgage and you have a responsibility to maintain this policy (there can be certain exceptions, but they are rare).
- Mortgage protection pays off your mortgage in full if you die.
- It runs for the same length of time as your mortgage.
- If you wish to, you can add serious illness cover to your mortgage protection policy. This means your mortgage will be cleared not only if you die.
- You can use an existing life insurance policy provided it is not already pledged or assigned to cover another loan or mortgage and it provides enough cover.
Find the best value Mortgage Protection
At Mortgage123, we compare quotes and benefits from Ireland’s main life insurance providers.
Mortgage Protection from €10 per month
Discounts available
Up to 40% cheaper than banks
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Mortgage Protection FAQs
Reducing Mortgage Term
As you pay more off your mortgage, the amount that the policy covers reduces in line with the outstanding balance of your mortgage. Under normal circumstances the policy will end once the mortgage is paid off. It is the most common and the cheapest form of mortgage protection. Generally, your premium does not change, although the level of cover reduces.
Level Term Policy
The amount you are insured for and the premium you pay remains level. This gives you the same amount of cover throughout the term of the mortgage. If you die before your mortgage is paid off, the insurance company will pay out the original insured amount. This will pay off the mortgage and any remaining balance will go to your estate.
Once you have identified how much your mortgage is going to be, you should arrange for your Mortgage Protection Insurance. Your lender may give you a quote, but we will always be better value than a lender.
Arranging cover early in the process is helpful in case there are any medical queries that need to be attended to. We can arrange mortgage protection approval and then hold the approval for a number of months in anticipation of you drawing down your mortgage.
The cost is on an individual basis and is based on the following:
- Amount of cover taken out (normally the mortgage sum affected)
- Term (fixed for same term as the mortgage)
- Age
- Gender
- Smoker/Non-Smoker
- General state of health
For new mortgages, you need to cover the amount you are borrowing over the term of your mortgage, i.e. if you are borrowing €250,000 over 25 years; then you will need cover for €250,000 over 25 years.
For an existing mortgage, you will need to ensure that you have covered the current outstanding balance on your mortgage for the remaining term of your mortgage. You can get this information from your mortgage provider. They will send you a statement every 12 or 6 months outlining the remaining balance on your mortgage. If you do not have this, just contact your mortgage provider and they will advise the amount outstanding and the remaining term.
Mortgage Protection is a special form of life insurance used when somebody is taking out a mortgage and specifically designed to pay off the balance outstanding on your mortgage. Reducing term cover can be much cheaper as the amount covered reduces over time.
They always come up more expensive not because they offer a better product, but because they use only one insurance company. Banks are not experts in life insurance advice like we are.
With the exception of Bank of Ireland, all the other banks are tied to Irish Life for Mortgage Protection. Bank of Ireland uses its subsidiary New Ireland (sometimes called Bank of Ireland Life) for Mortgage Protection.
