You have landed on this blog as you’re seeking the cheapest mortgage protection insurance available in Ireland. Well, stick around because you have arrived in the right place, for not only the cheapest price, (discounted fixed premium) but the best value policy meaning the leading complimentary benefits, an optional “Conversion” feature, and all-inclusive hassle-free service.
Cheapest Mortgage Protection Insurance
We guarantee you the cheapest fixed mortgage protection premiums, but we also grant the first month free and ensure that you don’t miss out on any important policy benefits.
But, before we talk about policy benefits, let me define “Mortgage Protection” and outline how to guarantee the cheapest mortgage protection quotes, leading to the highest, full policy term cost savings on your mortgage protection policy.
Mortgage Protection
The term “Mortgage Protection” can prove confusing, especially if it’s your first time getting a mortgage loan. Mortgage Protection is primarily a life insurance policy, but it differs from other from other forms of life insurance, as the cover is designed to decrease, as it only needs to cover your outstanding mortgage, which also reduces overtime.
As all Mortgage Protection policies assume an interest rate of 6% and your actual mortgage loan interest rate will be a lot less, there is always a surplus paid out to the policy owner after the mortgage loan is paid off should a death claim occur.
The Starting Point
When it’s time to shop around and compare quotes, like with any other life insurance quote you will need to input your dates of birth, smoker status, the life cover amount (loan amount), and the policy term (mortgage term).
It’s entirely optional i.e. your mortgage lender cannot insist on it, to include Serious Illness Cover or a Conversion Option.
The Cheapest Price
Lots of online brokers will appear under your search and they will all compare the market to find you the cheapest standard quote, but it’s the one that offers the highest added discount, against the cheapest market quote, for your entire policy term, that offers the actual cheapest price!
So, don’t be fooled by any short-term cash-back offers, make sure to get the cheapest fixed price for the entire time that you need your mortgage protection policy i.e. for the full policy term.
Added Value
The underlying policy complimentary benefits also play a role in terms of real value, as does the service level you receive. But which benefits truly count for something and which do not add up to all that much in reality?
Complimentary Benefits
In order of importance and based on the most useful added features:
1. The First Month Free:
This applies to everyone in terms of savings and can be particularly useful if you’re switching policies in terms of timing payments.
2. Dual Coverage:
Dual coverage unlike joint pays out on both people not just on the first claim. Most insurers offer this now with no added cost compared to joint coverage.
3. Guaranteed Insurability:
If remortgaging down the line, a change in health may also affect the premium on your existing mortgage protection, unless the increase in cover required, falls within the “guaranteed insurability limit”. With most insurers’ this means an increase of up to 100K will not require fresh medical evidence, the exception being Aviva, who limits this to a maximum increase of 50K
4. Missed Payment Reinstatement:m
Anyone can change their bank account or miss a debit on occasion, so this feature is worth looking out for, with Royal London granting the best terms i.e. 100 days.
5. Second Medical Opinion:
Can prove a useful resource for some and is offered only through Aviva and Royal London.
6. Children’s Life Cover:
A grim topic to say the least, but most insurers include a level of free children’s life cover, on average up to €5,000 except for Zurich Life, that don’t provide it.
7. Accidental Death Benefit/Advance Life Cover:
Offered by all insurers, this feature provides life cover, even before health underwriting is completed i.e. between application return and policy release. All 6 major insurers include this feature.
8. Waiver of Premium
This sounds like a great benefit, but it’s important to understand, that it covers your mortgage protection (life insurance) repayments and not your mortgage loan repayments. Also, you must be continuously ill and unable to work for 3 months, before it kicks in. Only provided by Zurich, but the claim level is low.
9. Terminal Illness Benefit
This feature is included with all market policies, to advance the payment of life cover on the diagnosis of a terminal illness. What’s important to note is that this should be confused with specified Serious Illness cover, which is an added optional coverage, that can be included on all insurance company policies, but which seriously adds to the cost.
10. Metal Health Support
Managing your mental health is just as important as your physical health and when life brings new and unexpected changes, it’s normal to feel anxious or even depressed. Policies with both Royal London and Aviva grant you access to a variety of specialised forms of therapy, including counselling and other supports.
11. Bereavement Support
Losing a loved one isn’t easy. So, it might help you to know there’s help on hand through bereavement counselling. When you or your spouse/ partner need someone to talk to, a team of counsellors and psychologists are just a phone call away, should you take a policy with either Royal London or Aviva.
12. Digital GP
A super additional benefit that’s made available only through Aviva and New Ireland, but the problem is that you pay for it, as Aviva allows no price matching and normally won’t permit a discount, so for the same policy, you will end up paying more.
With New Ireland on the other hand, you get this complimentary feature without too much addition to the price, provided your life cover equates to €500,000 or more.
(Tip if you already have VHI, make sure to check out if your policy already includes this).
If however your life cover (mortgage loan) is less than €500,000 and you want this feature, then the good news is that we can provide a 15% discount on Aviva’s standard premium.
Optional Benefit – Serious Illness Cover
It is not a mortgage lender requirement to include Serious Illness Coverage on your mortgage protection policy, your bank only requires life insurance. However, you can opt to include it when getting your quotes. You choose the level of cover for example 25% of the life cover amount, or any amount up to the life cover amount.
We don’t typically recommend adding Serious Illness Cover on Mortgage Protection, where you can afford to include it instead on a level cover family policy. Also, it’s important to understand, that if you include Serious Illness Cover on your mortgage protection policy, any claim is made payable to your mortgage lender and not you directly.
Optional Feature – Conversion Option
An optional feature on Mortgage Protection Policies is what’s called a “Conversion Option”.
A Conversion Option allows you to extend your policy cover term and to increase your “life cover” within the policy’s guaranteed insurability limits.
It also allows you to convert from a reducing cover Mortgage Protection policy to a level term Life Insurance policy if you fall seriously ill, with the option to extend your cover term in addition.
I have also seen cases where one life assured died and the mortgage was paid off, with the surviving partner then converting it to a level cover family protection plan.
Any changes that you make by way of a Conversion Option, are free from fresh evidence of health, so it protects you against a decline in your health affecting your long-term costs no matter how your mortgage needs may change in the future.
Including this feature typically adds about 5% to your premium, but it’s well worth it, particularly if you’re able to secure a price-matched, discounted, full-term fixed premium.
Service Level
The speed and accuracy of service are of course hugely important to remove any unnecessary stress in arranging your mortgage protection.
This boils down to convenience, which is why we offer a seamless online application process, with no printing, or posting on your part necessary. We even supply your original policy schedule online for ease of lender assignment.
So what are you waiting for go ahead and run your cheapest and best value quotes.
No gimmicks just the lowest fixed price, the best policy benefits plus the first month free!
