Mortgage Protection Insurance policies differ in terms of free additional benefits, as well as in their flexibility level should you need to alter your mortgage down the road. So, we have put together your guide to the best mortgage protection policies in Ireland by comparing all 5 leading providers and their latest 2023 offerings. This guide will allow you to quickly identify the best and most suited Mortgage Insurance policy for you!
Choice of 4 Policy Types
As you already know, your mortgage lender will insist on you taking out mortgage life insurance to pay off your mortgage on premature death during your mortgage loan term, meaning your mortgage is paid off and your policy ends. But, did you know that you have a choice of 4 different types of Mortgage Protection policy, as outlined below?
1. Basic Mortgage Protection. (life insurance ending with your mortgage).
2. Convertible Mortgage Protection. (future-proofed, flexible life insurance).
3. Life & Serious Illness Mortgage Protection. (life & serious illness cover)
4. Convertible Life & Serious Illness Mortgage Protection. (extendable life & serious illness protection).
3 Steps To Best Value
(1) Choose your policy type!
(2) Check out your free benefits!
(3) Max your discount!
Now you have a basic understanding of the 4 different Mortgage Protection policy types, let’s check out just what these complimentary features and benefits can include!
1. The first month free – paying nothing during your first month’s cover.
2. Free Dual Cover – a second claim payout facility on a 2 person policy!
2. Free Children’s Cover – typically amounting to €5,000 up to age 21.
3. Guaranteed Insurability – the ability to increase cover (within certain limits) without fresh underwriting.
4. Free Terminal Illness Cover – life cover payout on a terminal diagnosis.
5. Free Health Assistance – e.g. 2nd medical opinion, counseling.
6. Missed Payments reinstatement – ability to back pay missed premiums.
7. Free Accidental Death Benefit – Life insurance during the time it takes to process your application.
8. Waiver of premium – premium payment cover during a prolonged period of illness, exceeding 13 weeks.
Price Match Discount
We all love to get the best deal, so please listen up! whereas Irish Life, New Ireland, and Royal London will price match any competitor’s standard price, Royal London also allows an additional discount on both basic and convertible mortgage protection, even after a price match.
1. Basic Mortgage Protection
Aviva leads the way on benefits (offering 1-7 from the list above) but no longer offers a price match or discount. This allows Royal London to step in granting 1-6 free benefits from the complimentary listing along with the cheapest fixed price, through our broker discount.
2. Convertible Mortgage Protection
If you want to protect yourself and not just the bank, then Convertible Mortgage Protection life insurance only is the policy for you! By adding an optional “Conversion Option” you are basically future-proofing your policy against any change in your mortgage, health, or financial circumstances.
Quickly becoming the most popular option for both first-time buyers and those trading up, Royal London proves again to be the best option here, offering the first 6 of the 8 complimentary benefits listed above. Including a Conversion Option, adds 5% to the cost of basic cover, but then our price-matched discount still applies!
3. Life & Serious Illness Mortgage Protection.
Serious Illness Cover is an optional added benefit, but if you feel that this extra protection would bring you added peace of mind, then the key thing here is to identify the provider with the most comprehensive specified illness listings, along with the least complicated definitions when it comes to a claim!
Here New Ireland & Royal London lead the way, although it’s worth noting that Royal London doesn’t cover Aortic Aneurysm whilst New Ireland does and New Ireland doesn’t cover Rheumatoid Arthritis whilst Royal London does, otherwise, Royal London tends to be cheaper and includes the first month free, together with an extra four of the complimentary benefits listed above!
4. Convertible Life & Serious Illness Mortgage Protection
Only 3 providers offer this type of policy, Irish Life, New Ireland, and Zurich Life New Ireland in this instance is the best option in terms of serious illness coverage, whilst Irish Life is also worth considering for a higher level of both children’s free cover and guaranteed insurability.
The Bottom Line
When it comes to getting your best deal, you need to remember that you have a choice of 4 different policy types.
Getting your Quote & Policy Guide
Our online quote comparison engine does all the work for you. Simply enter your mortgage loan details with your chosen policy type, and the benefits and price comparison is automatic!
You will then receive an email confirming all the details and attaching your Customer Guide and Application Form for easy digital return!
Ken O’Gorman – QFA – Protection Specialist
OneQuote.ie | Smart Financial Protection