Table of Contents
And that’s it. Fairly straightforward.
Ignore the bank if they try to spook you by saying that not buying from them causes delays. It doesn’t.
And that’s it. Fairly straightforward.
Ignore the bank if they try to spook you by saying that not buying from them causes delays.
It doesn’t.
—
If you’re on this here blog, I can assume a couple of things:
I can also probably assume you’re a responsible adult, or at the very least very good at pretending, which, as we all know, is what adulthood mostly consists of.
Now there is one thing you need to know.
Depending on whether you already own a house, this is either coming to you too late or just in the nick of time.
The banks are great for mortgages, but they’re a rip-off when it comes to Mortgage Protection Insurance in Ireland.
They’ll try to force you to buy their mortgage protection because:
You’re paying them so they can pay themselves if you die.
Yes, it sucks.
No, there’s not much you can do about it except arm yourself with the information.
So let’s walk through the process.
Mortgage protection is a type of life insurance that clears your mortgage if you die before it is paid off.
It’s mandatory if you’re getting a mortgage in Ireland.
You can buy it from:
Yes.
You can use an existing life insurance policy as your mortgage protection as long as:
For example:
Mortgage: €200,000 over 30 years
Acceptable policy: €200,000 cover for 30 years or longer.
If you do this, you must assign the policy to your lender.
That’s what the Deed of Assignment does.
By the way, you cannot assign life insurance you have through work (death in service benefit).
A Deed of Assignment is the legal document that transfers the rights of your life insurance policy to your lender.
It allows the bank to receive the payout from the insurer if you die before your mortgage is repaid.
Without this document, the insurer would pay your family instead of the bank.
Banks don’t like that uncertainty, so they insist on assignment before mortgage drawdown.
To make it legal.
Otherwise it would be a bit like two lads agreeing something over a handshake and hoping for the best.
Your bank needs the legal paperwork confirming they are entitled to the payout.
Without it, all they have is trust and a handshake.
Banks prefer paperwork.
You take out the policy and pay the premiums.
Your bank gets any payout if you die.
To assign the policy you sign the Notice of Assignment included in the legal pack your solicitor receives from the lender.
You return the signed notice along with your policy schedule to the bank.
The bank then sends the notice to the insurer.
The insurer records the bank’s interest and sends confirmation back to the bank.
Once that happens, the lender is satisfied.
Mortgage drawdown can proceed.
Usually the bank.
Once you return the signed form and policy schedule, the bank sends it to the insurer.
The insurer then sends confirmation back to the bank stating:
Thank you for your recent Notice of Assignment in respect of the above numbered policy. We confirm that the lender’s interest has been noted.
Once the bank receives that confirmation, they are happy to release the mortgage funds.
If you are buying a property as a couple, we usually recommend two single-life policies rather than one joint policy.
In that case, you complete a Deed of Assignment for each policy.
The process is identical.
No.
There is no charge to assign a life insurance policy to your lender.
That’s it.
Simple enough once someone explains it in plain English.
Editor’s note: This article was originally written in 2016 and fully reviewed and updated in March 2026 to reflect how assignment of life insurance policies currently works for Irish mortgage lenders.
Written by Nick McGowan, QFA RPA APA
Nick is a qualified financial advisor and founder of Lion.ie, a multi-agency Irish life insurance and income protection brokerage based in Tullamore.
He’s been helping people secure fair, transparent cover for over 15 years and was named Protection Broker of the Year 2022.
If you’d like straight answers without the sales pitch, learn more about Nick here.
As Ireland's leading life insurance broker, we specialise in comparing the rates and policies from the top five Irish life insurance providers and offering the very best value quotes to suit the individual needs of our clients. Our expertise lies in finding a suitable insurance plan for those with specific needs, be it a particular illness, occupation or claim history, we've got you covered in every sense!
Watch our video
