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Editor’s note: First published 2017 | Refreshed October 2025 with updated insurer info, examples, and compliance details.
Start Here: To draw down a mortgage in Ireland, you only need basic mortgage protection insurance (decreasing life cover).
You don’t need full life insurance, and you definitely don’t have to buy it from your bank.
But — if you want your family protected (not just the bank), full life insurance is often the smarter choice because it can leave money behind for them once the mortgage is cleared.
This guide explains how mortgage protection works, what it costs, and how to avoid the classic mistakes first-time buyers make with their bank’s policy.
Mortgage protection insurance is a type of life insurance that clears your mortgage if you die during the term.
It’s compulsory in Ireland for residential mortgages (with some exceptions).
The cover amount reduces as your mortgage balance reduces, but your monthly payments stay the same.
In short, it ensures your bank gets repaid — but it doesn’t leave any extra money for your family.
That’s why many homeowners combine it with life insurance for extra peace of mind.
Here’s a quick explainer I recorded a while back — still relevant today, even if the haircut isn’t 😅
You need mortgage protection in place before drawdown. Most buyers arrange it at the binding contracts stage.
You can apply early and delay the start date until closing — it’s one of the easiest ways to stay ahead of your bank’s checklist.
📘 Free PDF: Mortgage Protection Beginner’s Guide
Want a printable version with examples and pitfalls? Download our free PDF guide and keep it handy as you go through the mortgage process.
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:
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.
If you’re unsure which fits best, see our Mortgage Protection vs Life Insurance comparison.
No. Mortgage protection pays your bank. Life insurance pays your family — and the payout doesn’t reduce over time.
Sometimes, if the cover amount and term match your mortgage. But most people take out a new, cheaper mortgage protection policy instead.
No. Banks can only sell one insurer’s product, while brokers compare them all. That’s why we’re almost always cheaper.
Don’t stress — different insurers assess conditions differently. We’ll match you with the right one first, so you don’t risk a decline.
Apply once you go sale agreed, but set your start date for when you sign contracts. That way, you’re covered in time without paying early.
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We’ll help you get covered quickly — without the bank-speak, pressure, or stress.
Thanks for reading,
Nick
Editor’s Note: First published 2017, updated annually.
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!
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