Mortgage protection insurance is a type of life insurance that you must buy when you get a mortgage in Ireland. If you or your partner dies during the term (years) of the mortgage, the mortgage protection policy pays off your mortgage’s outstanding balance.
Oh, hello there, I’ve been expecting you; hopefully, it hasn’t taken you too long to find us.
But now, you can sit back, relax, and learn all you need to know about mortgage protection before signing on the dotted line.
Welcome to THE most comprehensive guide to mortgage protection on t’internet.
You’ve come to the right place.
You don’t need to know everything there is to know about mortgage life assurance.
But if you read through these articles, you’ll know more than enough to get by…
Your starting point, if you read just one article, make it this one.
The one question almost everyone asks.
Ding ding ding – you’ve found the number one most frequently asked question!
Let me clear things up for you.
I prefer to call life insurance family protection because it leaves an agreed lump sum to your family to replace your income when you die. The payout amount is fixed for the term of your policy, so whether you die on the first or last day, the full amount will payout.
Mortgage protection covers the bank’s arse. It clears your mortgage on death. The amount of cover reduces at a similar rate to your mortgage balance.
For a residential mortgage, the bank will insist on it before they issue your mortgage cheque.
In some cases, the lender may waive the need for life insurance:
Waiving the need for life insurance is at the bank’s discretion.
Mortgage insurance is not required for an investment/rental mortgage.
You might hear these lies from your bank
It’s all BS, but it’s up to you to stand up for yourself and say thanks, but no thanks. At least shop around for another quote, don’t let them bully you into buying their cover without a fight.
All I can say is our quotes will be lower, our service will be better, our turnaround will be faster, and our policy will contain benefits the bank can’t offer – like dual life mortgage protection for the same price as joint.
You’re not obliged to buy from the bank who gives you the loan. And it’s illegal for a bank to offer you a mortgage on the condition you buy insurance from them.
This should be common knowledge. It’s a sad state of affairs when we have to clarify when it should be on the bank to explain this to you before you sign on the dotted line.
This changes regularly, so we keep this post updated
A must-read before you get bullied by your bank.
A guide to getting mortgage life insurance if buying from abroad.
What you need to know if you have agreed on a split mortgage with your bank.
Don’t get sidetracked by price only.
Yes, in the vast majority of cases. Here’s a detailed blog on getting mortgage protection with a chronic illness.
If you’re not married and buying together, you must read this
Pimp your policy with these add-ons.
The most flexible type of mortgage life insurance available.
Convertible mortgage protection
How to get twice the cover for the same price Dual life mortgage protection
Why you should think carefully before adding serious illness cover to your policy Mortgage protection serious illness cover
The smart alternative to serious illness cover. Mortgage income protection
The cost of mortgage protection depends on:
Using Sarah and Paul above and presuming they’re non-smokers in good health, here are a range of quotes for €270,000 mortgage protection over 25 years.
The older you are, the more expensive it becomes.
If you’re a smoker, you can double those quotes.
By the way, if you vape (even 0% nicotine ones) or use any nicotine replacement products, the insurers will class you as a smoker. Once you are 12 months “clean”, you can apply for non-smoker rates.
Mortgage payment protection insurance is……well, it’s a waste of money.
In theory, it’s a policy that will pay your mortgage for 12 months if you can’t work due to illness or redundancy.
In practice, it was mis-sold to people (like the self-employed) who could never make a valid claim.
It’s easy to confuse mortgage income protection and mortgage repayment protection because they sound similar.
But the benefits they provide are like chalk and cheese.
Mortgage income protection will provide you with an income to pay your mortgage if you can’t work due to any illness, injury or disability.
You’ll get paid until you get back to your job or until the end date of your mortgage.
So if you get sick on day one of your 25-year policy and can’t work again, your policy will payout for 25 years.
Mortgage income protection is the younger brother of income protection – you can read more about the different types of income protection here.
All explained here
You can use your current address as this is where the insurer will send correspondence. You can change this to your new address once you have moved in.
Check out this article on how to compare mortgage protection policies in Ireland.
That’s the bare bones of mortgage protection.
I’m sure you have millions of other questions. If you do, here’s a good place to start. You can download our mortgage protection guide or sign up for our free mortgage protection course, where you’ll learn all you need to know about mortgage protection and the pitfalls to avoid. And all in easy bite-sized pieces served fresh over email.
If you prefer a chinwag, I’m on 05793 20836.
Or, if you’re ready to go and would like me to make a recommendation, please complete this questionnaire, and I’ll be back over email with a personalised recommendation.
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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!