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 term (years) of the mortgage, the mortgage protection policy pays off what you owe the bank.
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 this blog, you’ll know more than enough to get by.
Let me clear it up for you.
The payout on a life insurance policy is fixed – it doesn’t reduce. If you buy 300k life insurance and die on the first or last day of the policy, 300k will payout.
The payout on a mortgage protection policy reduces over time. It’s designed to clear the outstanding balance on your mortgage (not to leave a lump sum behind)
All you need to drawdown a mortgage is basic mortgage protection.
For a residential mortgage, the bank will insist on mortgage protection before you can drawdown your mortgage.
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.
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)
If your bank is of the hard-sell variety, they might tell you some of these whoppers:
And so on and so-forth.
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.
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.
You’re not obliged to buy from the bank who gives you the loan.
You can buy mortgage protection from
We deal with all of these insurers bar Laya (who don’t deal with brokers)
What is the Best Mortgage Protection Policy in Ireland (2025 Edition)
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 hoodwinked by your bank.
Guide to mortgage protection for first-time buyers
If you’re not married and buying together, you must read this
Mortgage Protection Cohabiting Couples
Pimp your policy with these add-ons:
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?
So far, we’ve looked at mortgage protection that will pay the mortgage if you die.
But what if you get sick and can’t work?
How will you pay the mortgage and keep a roof over your head?
Having the smarts to take out mortgage income protection will make you bulletproof.
This type of insurance will provide you with an income to pay your mortgage if you can’t work due to any type illness, injury or disability that stops you from doing your job.
Ther policy will continue to pay you until you get back to work or until your policy ends.
So if you get sick on day one of your 25-year policy and can’t work again, your policy will pay you up top 75% of your income 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.
Thanks for reading
Nick
Editor’s Note | We first published this Guide in 2017 and have updated it 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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