Flexible, future-proofed Mortgage Protection insurance is important because as your future circumstances change so too will your Mortgage Loan requirements, meaning you will have to amend your existing Mortgage Protection insurance as a result!
But when this happens, you’ll want to avoid the rigmarole of filling out new forms with fresh health information and most of us would much prefer to simply alter our existing insurance policy.
Altering Your Mortgage Loan
Many of us will move property a number of times in our lifetime meaning, that we may need to remortgage or move to a new mortgage provider altogether.
Indeed, even just wanting to convert an attic or build an extension, once you alter your Mortgage, you will also need to alter your Mortgage Protection insurance, to tie in with your new loan details – your bank will insist!
Altering Your Mortgage Protection Policy
When amending your mortgage, the 2 items you may need to alter on your mortgage protection policy are your loan term and your loan amount.
If looking to extend your loan term beyond that remaining on your existing policy, the only insurer to allow you to do so (within certain cover limits under their standard policy), without having to make a new application is Aviva.
Whereas, all life insurers in Ireland including Aviva will allow you to increase your cover amount under what they term “Guaranteed Insurability”, but only subject to certain maximum cover increases and age limit rules applying with their particular company, as outlined below:
Health Evidence Free Cover Extension
Irish Life – Max cover increase: €125,000 – Options ends at 55
Royal London – Max cover increase: €100,000 – Options ends at 55
Zurich Life – Max cover increase: €100,000 – Options ends at 55
New Ireland – Max cover increase: €100,000 – Options ends at 55
Aviva – Max cover increase: €40,000 – Options ends at 70
Future Proofing Your Mortgage Protection Policy
Aviva and New Ireland only allow for increases in Life Cover, whereas all the others (above) also allow for Serious Illness Cover increases, where you have this cover already in place.
The Most Flexible & Hassle Future Proof Options
When it comes to extending the policy term, as mentioned Aviva is the only insurer allowing this as standard, but their maximum cover increase of €40,000 life cover only may be restrictive. Therefore, another option is to add a Conversion Option to your policy.
Conversions options which allow you to take out a new policy free of fresh medical evidence and with an extended term, are offered by New Ireland, Irish Life, and Royal London and this adds about 5% to their standard cost.
Combining a “conversion option” with “guaranteed insurability” grants the most future-proofed policy flexibility, with Royal London’s policies generally being the most cost-effective, especially on a joint mortgage loan, where they allow dual (separate pay-outs) cover benefits at joint cover prices!
Running Your Quotes
OneQuote.ie is the only broker to allow you to include a conversion option when comparing the market online!
So go ahead and run your quotes now! The application process is easy, with full quote and application details sent directly to your email, in an instant!
