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The Definitive Guide to Dual Mortgage Protection

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You’re looking for a mortgage protection policy:

You’re probably looking for the best-priced mortgage protection policy.

But will you find the best value mortgage protection policy?

You will if you keep on reading:

What’s the difference between dual and joint-life Mortgage Protection?

what's the difference between dual and joint life mortgage protection

Joint mortgage protection will payout on the first death only

  • First-person passes – the policy clears the mortgage
  • Policy ends

Dual mortgage protection will payout on both deaths.

  • First-person passes – the policy clears your mortgage
  • Cover then continues for the second person on a reducing basis
  • Should the second person pass away, the policy pays out again
  • Policy ends

In the unfortunate event of both lives insured dying simultaneously, there will be a double payout.

But why would you want a double payout?

Imagine you take out a mortgage protection policy for €250,000

Let’s look at the worst-case scenario and compare what happens under each policy.

You both die on the first day of your policy.

Under a normal joint life mortgage protection, your policy would pay out €250,000 and clear the mortgage.

With a dual life mortgage protection policy, your policy would pay out €500,000; €250,000 to clear the mortgage and it would also leave €250,000 to your family.

Does dual mortgage protection not cost a lot more?

With Royal London, the premium for dual life mortgage cover is the same as for joint life mortgage protection.

With the other insurers, the difference in premium is negligible.

Why does my bank only offer Joint Life Mortgage Protection?

Simply because all of the banks are tied to either Irish Life or New Ireland, neither of which offers dual life mortgage protection.

Where we have seen the benefits of dual life cover first-hand.

Kate’s young husband Peter passed away unexpectedly.

There were too many memories in the home she had made with Peter, and she wanted to move back to her parent’s neighbourhood.

To move, she needed to take out a small mortgage because the money she received from selling their own house wasn’t enough to buy a new property close to her parents.

She got approval for a new mortgage, but she couldn’t get mortgage protection due to a combination of a new health issue and COVID19.

She rang me in a panic.

I explained that she still had insurance in place on her life that she could use for the mortgage.

The relief was palpable!

She thought her policy ended when the insurer cleared the mortgage

Fortunately, they had taken out dual life cover.

It’s one of those – “it’ll never happen to me” scenarios, but life insurance/mortgage protection exists to protect you from the unexpected.

We always recommend the policy that offers you the best peace of mind and flexibility now and in the future.

When arranging cover, prepare for the worst but hope for the best.

I hope that clears up any confusion between dual and joint life mortgage protection.

If you’d like me to make a recommendation on the types of cover you should consider based on where you are in life, please complete this questionnaire, and I’ll be right back.

Alternatively, if you’d like a quick chat first, you can schedule a call here.

Talk soon 🙂

Nick McGowan
lion.ie | making life insurance easier

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What is the Best Mortgage Protection Policy in 2021?

Buying a house, as we all know, is a pain in the hole as it involves any number of the following:

Keeping a paper trail.
Dealing with estate agents.
Living at home in the box room with yer ma and da for a year to save a deposit. 
Paperwork. 
Dealing with estate agents.
More paperwork. 
Budgeting for stamp duty and a solicitor.

It’s no wonder you might be tempted just to say ‘feck it’ and go with your bank when they offer you a Mortgage Protection policy. But don't!

Don’t know where to start?

Have a nose through our free life insurance guides

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