What is Mortgage Protection?

20 August 2018
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Mortgage protection insurance is a life insurance policy that pays off your mortgage in the event of death.The premium is calculated by reference to age, mortgage amount, term and your medical history.

Mortgages protection premiums start at €10 per month.

To view current mortgage protection quotes please visit our Mortgage protection calculator.

As a major provider of Life insurance and with access to large volume discounts from our insurance companies, we are pleased to be providers of the cheapest mortgage protection quotes available in Ireland.

Our mortgage protection policies will save you money, very often running into many thousands of euro over the life of a typical policy. A savings of €5 per month works out at €1,800 over the term of a 30 year mortgage protection insurance policy.

Your mortgage protection policy clears the outstanding balance on your mortgage at the date of the claim.

It can be a great source of comfort to a surviving partner or family, as the burden of meeting mortgage payments is gone, usually coinciding with a significant drop in income.

In general, having a mortgage protection policy is a condition of a mortgage loan. A mortgage protection policy has the following features:

  • The premium is fixed for the duration of the policy
  • Lenders generally take an assignment of the life insurance policy. 
  • The principal benefit is that the insurer will pay off the amount outstanding on your mortgage at the time of death.
  • The premium is calculated by reference to age, mortgage amount, term and your medical history.
  • Premiums must be kept up to date in order to maintain benefits.
  • The younger you are, the cheaper the policy

Some mortgage protection policies offer additional benefits which allow you to top up the cover in the event of a change in circumstances.

If you are buying a new home, we are here to help and guide you, not just on all aspects of mortgage protection, but also in regard to choosing appropriate mortgage rates and giving you advice on other important financial aspects of the transaction.

From an insurance perspective our principal objective is to provide you with independent advice on the merits of competing mortgage protection and life insurance quotes and to arrange the most appropriate mortgage protection insurance.

Many of our life insurance clients also used our mortgage arrangement service, available through our www.mortgages.ie business. Our mortgage business provides independent mortgage advice and advice on all related insurance aspects of the transaction.

Existing life insurance or mortgage protection policy holders

Life insurance rates have come down over the past number of years.

Many existing mortgage protection policy holders will find they can get cheaper mortgage protection quotes today, even though they are a number of years older.

We assist clients who have arranged their mortgage directly with a lender or have an existing mortgage protection policy but want the benefit of independent advice and cheaper rates.

When you deal directly with a lender in Ireland, you will generally find that the lender is tied directly to one Life Company and they do not provide the range of mortgage protection quotes.

As a result we find many situations where policies arranged directly through a lender are significantly more expensive than our quotations..

How much does it cost?

Our mortgage protection quote calculator searches the market for the best rate available. On submitting an application we then provide you with a full breakdown of the policies on offer from the major life companies, where you can compare prices and cover levels

In today's market the clear tendency is to go for the cheapest mortgage protection quote available in Ireland.This is how we have built our calculators- to deliver the best quote after applying all discounts.


Over 50 Mortage Protection

Irish Law requires a mortgage holder to take out a mortgage protection policy if you are 50 or younger when taking out the mortgage.

Banks may insist on mortgage protection as security for a loan if you are over 50 even though it is not a legal requirement.

In general, even if you are over 50, we recommend that as long as the cost is not prohibitive, you should have a protection to support a mortgage or loan, whether or not it is assigned to a lender.

Residential investment properties - Use additional rent to support a mortgage protection policy

We strongly recommend taking out life insurance policies to support residential investment property mortgages. 

Unfortunately following the property crash, many investment property holders are now sitting on large mortgages and often negative equity assets without any life cover. In the unfortunate event of death this will mean that any shortfall will become a liability of the deceased person's estate, which will in turn reduce the amount available for surviving partners and children.

For further information on mortgages and mortgage protection, you may also want to visit our website www.mortgages.ie