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Mortgage protection insurance is a type of life insurance 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.
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 about mortgage protection before signing on the dotted line.
Welcome to THE most comprehensive guide to mortgage protection on t’internet.
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.
Mortgage protection in plain English
And here’s the one question almost everyone asks.
Ding ding ding – you’ve found the number one most frequently asked question!
Let me clear it up for you.
The cover on a life insurance policy is fixed – it doesn’t reduce.
The cover on a mortgage protection policy reduces in line with the mortgage.
All you need for your mortgage is basic mortgage protection.
For a residential mortgage, the bank will insist on mortgage protection before they give you the big 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
Blah-de-blah-de-blah.
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 the dotted line.
This changes regularly, so we keep this post updated
How to find the best life insurance for your mortgage
Unfortunately, it can, but we’re the experts at getting cover for people with an underlying condition.
How Chronic Illness Can Affect a Mortgage Application
A must-read before you get bullied by your bank.
Guide to mortgage protection for first-time buyers
A guide to getting mortgage life insurance if buying from abroad.
Non-resident mortgage protection
Here’s what you need to know if you have agreed on a split mortgage with your bank:
Mortgage protection for split mortgages
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.
Chronic illness should not affect your chances of getting a mortgage for your dream home.
If you’re not married and buying together, you must read this
Mortgage Protection Cohabiting Couples
Pimp your policy with these add-ons.
The most flexible type of mortgage life insurance available.
Convertible mortgage protection
How to get twice the coverage 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
Where can you get the best mortgage protection quotes?
Why you should avoid your bank like the plague
Will you need to do a medical?
When should you apply for and start your mortgage protection?
The cost of mortgage protection depends on the following:
Using Sarah and Paul above and presuming they’re non-smokers in good health, here is 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.
What Ten Factors Affect The Cost of Mortgage Protection? (your health is the one you can influence)
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.
Avoid.
Mortgage income protection will provide you with an income to pay your mortgage if you can’t work due to 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 pay out for 25 years.
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.
Nick McGowan
lion.ie | making life insurance easier.
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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