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:
Joint mortgage protection will payout on the first death only
Dual mortgage protection will payout on both deaths.
In the unfortunate event of both lives insured dying simultaneously, there will be 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.
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.
Simply because all of the banks are tied to either Irish Life or New Ireland, neither of which offers dual life mortgage protection.
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.
Alternatively, if you’d like a quick chat first, you can schedule a call here.
Talk soon 🙂
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