Mortgage Protection or Life Insurance? | LION.ie
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Mortgage Protection or Life Insurance

 

life insurance or mortgage protection

Hi,My partner and I are in the process of buying a house, the bank are saying we should go for life insurance instead of mortgage protection ?? I will be using a broker for which ever i decide on but can you suggest which is the best to go for – mortgage protection or life insurance?Regards,Fiona

If you’re ever in doubt in the presence of a bank official,  do the exact opposite of what they advise.

  • If they advise a fixed rate, take the variable.
  • If they say invest in property, put all your money in stocks.
  • If they offer life insurance, take the mortgage protection and run.

Mortgage protection or life insurance – what’s the difference?

  • Life insurance leaves a lump sum to replace income.
  • Mortgage protection only clears your mortgage.

The premium for life insurance is higher – compare quotes instantly.

Whether to buy mortgage protection or life insurance depends on where you are in life ; here’s a simple guide to what you need.

I’m assuming you’re in the process of buying a house with a mortgage.

1) Single person with no dependents

Essential – a basic mortgage protection policy.
Recommended – a separate serious illness policy.
If budget allows – income protection.
Avoid – life insurance.

2) Single person with dependents

Essential – a basic mortgage protection policy.
Essential – a separate life insurance policy.
Recommended – a separate serious illness policy.
If budget allows – income protection.

3) Couple with no dependents (both working)

Essential – a basic mortgage protection policy.
Recommended – a separate serious illness policy.
If budget allows – income protection.
Avoid – life insurance.

4) Couple with no dependents (one working)

Essential – a basic mortgage protection policy.
Essential – a separate life insurance policy on the person working.
Recommended – income protection.
If budget allows – serious illness cover.

5) Couple with dependents

Essential – a basic mortgage protection policy.
Essential – a separate life insurance policy on both parents.
Recommended – serious illness cover.
If budget allows – income protection.

Over to you…

Do the above recommendations make sense?

If not, or if you have any questions on whether to go for mortgage protection or life insurance, please call me on 05793 20836 or complete the short form below and I’ll be right back.

Nick McGowan
lion.ie | making life insurance easier

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