What is Mortgage Protection?

Mortgage protection insurance is a type of life insurance you need to get a mortgage in Ireland.
If you or your partner dies during the mortgage term, the policy pays off the balance owed to the bank.

Here’s a quick explainer I recorded a while back — still relevant today, even if the haircut isn’t 😅

Our Starting 15 Mortgage Protection Tips (come on the Faithful 🟢⚪🟡)

Like a GAA team, you need all 15 players working together if you want to cover every angle.
Here’s our full line-up of mortgage protection tips — from the basics the bank won’t tell you, to the clever moves that’ll actually protect your family.

1. You do not need full life insurance to draw down your mortgage — only basic mortgage protection (decreasing life cover).
2. But consider this: while mortgage protection is enough for the bank, full life insurance offers better protection for your family, because the payout doesn’t reduce — meaning there’s often money left over once the mortgage is cleared.
3. Have mortgage protection in place when signing binding contracts — you can set the start date in advance.
4. Dual life cover is better than joint life cover.
5. If buying as an unmarried couple, consider two single-life policies to reduce inheritance tax liability.
6. You don’t have to buy from your bank — shop around for value and benefits.
7. A good broker will be faster than your bank.
8. If you add serious illness cover, any payout goes to the bank — not you.
9. Premiums are fixed for the life of the policy; no need to reapply annually.
10. Only insure the mortgage amount (not the house price).
11. You don’t need to insure mortgage interest, just the principal borrowed.
12. If you have health issues, speak to a broker first to avoid being declined by your bank.
13. If you use e-cigarettes, insurers charge smoker rates (double the premium).
14. Mortgage protection policies don’t have sneaky exclusions — you’re either accepted with full cover at the start, or declined outright.

Mortgage Protection vs Life Insurance: Which is Better?

All you legally need to draw down a mortgage is basic mortgage protection (decreasing life cover).
That’s the minimum the bank requires to protect their loan.

But here’s the part most people miss: mortgage protection benefits the bank, not your family.
If you pass away, the policy clears the mortgage and that’s it — no extra money goes directly to your partner or kids.

Life insurance is different:

• The payout doesn’t reduce — if you take €300,000 cover, €300,000 is paid out whether you die on day 1 or day 30 of the policy term. The mortgage is cleared first, and any balance left over goes to your family.
• Your family can then choose what to do with that balance: keep cash back, cover day-to-day bills, or invest for the future.
• You can add options to extend or increase cover without new medicals as life changes (kids, new mortgage, etc).

So, while mortgage protection is the legal minimum, many of our clients choose to step up to full life insurance instead — because it actually protects the people they care about, not just the bank.

In short: Mortgage protection = protects the bank. Life insurance = protects your family too, because anything left after the mortgage is paid goes directly to them.

Is Mortgage Insurance Mandatory?

Yes, for a residential mortgage. Exceptions may apply if:

• The borrower is over 50.
• You’ve been declined life insurance.

Mortgage protection is not required for investment/rental mortgages.

How Much Does Mortgage Protection Cost?

Premiums depend on age, smoker status, loan amount, term, and health.

• Age 30, €270k over 25 years: €17/month
• Age 35: €23/month
• Age 40: €32/month

Smokers: double the quotes. Vapers/nicotine replacement = smoker rates until 12 months nicotine-free.

Do You Have to Buy from Your Bank?

No. Banks often mislead borrowers with myths like “brokers slow things down” or “our policy is cheaper.”
That’s nonsense. Always shop around.

Our quotes are lower, service faster, and policies better than the banks’.

Best Mortgage Protection Policies

Top Irish providers include: Aviva, Irish Life, New Ireland, Royal London, Zurich. (We don’t work with Laya.)

Special Cases & Advice

• First-time buyers
• Cohabiting couples
• Health issues

Add-Ons & Alternatives

• Convertible mortgage protection
• Dual life protection
• Serious illness cover (not recommended)
• Mortgage income protection

Over to You…

That’s mortgage protection in a nutshell.
If you’d like personal advice, complete our questionnaire and I’ll get back to you with a recommendation.