Mortgage Protection FAQ

   01 Jan 2019

Mortgage protection is often required by lenders, learn more about the options you have in choosing the right mortgage protection policy for you and your family.

Mortgage protection is an important part of the home-buying process. This form of life assurance is generally compulsory for mortgage holders in Ireland. This policy should pay off the remaining loan in the case of your premature death, with the benefit on this policy reducing as your mortgage is reduced. 

What does Mortgage Protection Cover?

 It is a common misconception that mortgage protection cover will also protect your mortgage in the case of prolonged illness or if lose your job.  Unfortunately, that is not always the case. In many cases, your advisor may suggest Serious Illness or Specified Illness cover in addition to the lump sum benefit on your policy. This will help cover the cost of your mortgage payments in the case that you become seriously ill. If you can afford it, another option to fill that gap is Income Protection. Be sure to discuss all your options and any concerns you may have with your financial advisor to make sure that you have the coverage that allows you to focus on what’s important- your health and long-term stability, rather than the financial burden of an unexpected change in circumstances. 

What are my Mortgage Protection options?

In most cases, your mortgage lender will offer you protection through their company, but it is important for you, as the consumer, to explore your options to make sure that you are getting the best protection policy for your circumstances. A financial broker can explore all the options through the major insurance companies to ensure that you are getting the best deal and level of cover for your needs.

Is Mortgage Protection the same as Life Insurance?

It’s common to confuse Term Life Insurance, alternatively known as “Term Assurance” or “Life Assurance” . While there is some overlap, in that both types of policy will pay out the benefit upon the death of the insured life, mortgage protection is solely designed to pay off the remainder of your mortgage, and is payable directly to your mortgage lender, while Term Life Assurance pays a lump sum to your dependents or beneficiaries.

How much does Mortgage Protection Cost?

The cost of a Mortgage Protection policy will vary depending on many factors, such as:

  • Your current age
  • The type of work you engage in
  • The amount of cover you require
  • If you are a smoker or not
  • The length of coverage
  • Your current health
  • The length of your loan

You can get an idea of how much a policy might cost using our quick quote calculator. Once you’re ready to take the next step, be sure to give us a call so we can explore possible discounts and make sure we’re getting you the best policy possible.