Quick cost Comparison between Mortgage protection and Life Insurance
11 November 2019
| Status | Mortgage Protection | Life Insurance |
|---|---|---|
| Age 30 for 35 years | €13.07 | €18.36 |
| Age 40 for 25 years | €19.21 | €26.50 |
| Age 50 for 15 years | €29.69 | €46.08 |
Lenders require mortgage protection insurance as security for their loan. If a claim is made on the policy the balance at the time of the claim is cleared through the policy. It is known as a reducing balance protection policy
Rather than taking out a mortgage protection policy you could take out life insurance policy and use this as security for your mortgage. If a claim is made the pay out will be the full amount €250,000, with part going to clear the mortgage and the balance going to the estate of the deceased.