Mortgage Protection

Compare mortgage protection insurance to find the best cover for you. There are different types of policy to choose from, depending on your already existing insurance, future property plans, and budget. Below we help you examine your mortgage protection needs and show you how exactly mortgage protection works including what affects its price.

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Mortgage Protection Ireland Tips
Compare Mortgage Protection

Mortgage Protection Tips

  1. If a new mortgage, apply at least one month before the draw-down date, you can hold your quoted price and still get the first month free!
  2. If switching to save, apply straight away and time the start date to conincide with the cancellation of your original policy.
  3. Don’t worry about noting your lender’s interest at policy application stage, this is done later when your policy documents are provided!
  4. Unless you have opted to include Serious Illness Cover, for the most flexible policy, always include a Conversion Option, this gives you the most adaptable cover and only costs a little bit extra!

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Consider Your Needs

In Ireland, your banks minimum requirement is for a decreasing term life cover policy, but it’s always wise to consider your policy options, before choosing your best-suited policy type and policy benefits!

Decreasing Term Cover

A decreasing term policy has a term (in whole years) to match your mortgage loan term and the cover reduces as the balance on your mortgage loan decreases. The price already takes into account that the cover will reduce and is fixed for the policy term. Decreasing term cover is cheaper than level term cover for the very reason that the cover reduces.

Level Term Cover

Whilst level term insurance is suited to interest-only mortgages, it can also be chosen for standard mortgage loans. With a level term policy as your mortgage loan decreases the sum assured (cover level) remains the same. This type of cover is a suitable choice if you want to leave your dependents with some extra funds, don’t already have additional family protection or you want to turn the policy into a long term plan through the use of a continuation option.

Mortgage Protection Insurance – Your Policy Options

With mortgage protection you can choose to have two people on the same policy and include specified illness cover if you so wish. Below we explain everything you need to know about “decreasing term cover” including the automatic and optional policy features and benefits.

The Policy Term

The term of your mortgage protection should match your mortgage loan term. If switching policy on an already existing mortgage the term of your policy should match your remaining loan term.

The Cover Level

The life cover level on your mortgage protection policy should match your mortgage loan amount. If switching policy on an already existing mortgage the cover level of your policy should match your remaining loan balance.

If wanting to include optional specified serious illness cover on your policy, you can choose any amount between 10% and 100% of your life cover amount.

The Cover Basis

Single cover – covers one person under the policy.

Joint cover – allows you to have 2 people on the one policy, but it only has 1 cover pay-out, on the first claim.

Dual cover – allows for 2 people on the same policy, but provides pay-outs on both people, under separate claims.

The Price

The price is based on your age, smoker status, and your health. So, you will need to answer some medical questions when making an application. Once your policy commences, the price is always fixed, with a choice of monthly or annual premiums.

Most financial advisors will charge you smoker rates, even if you’re tobacco-free for 12 consecutive, months, but you’re still using nicotine replacement products. Here at we uniquely offer reduced nicotine replacement rates.

Mortgage Protection – Automatic Benefits & Features

Automatic Cover

  • Accidental Death Benefit – A lump sum paid in the event of death caused by an accident, when the insurer is still processing your application form.
  • Terminal Illness Benefit – If you are diagnosed with a terminal illness your full life cover sum will be paid out.
  • Children’s Life Cover – A lump sum benefit is paid out.

Automatic Features

  • Guaranteed Insurability – The ability to increase cover in line with and extended mortgage, free of fresh evidence of health.

Mortgage Protection – Optional Features

Optional Feature

Conversion Option
Including a Conversion Option allows you to later extend your policy cover term or to convert from a decreasing term to a level term cover policy, should a switch to interest-only ever be necessitated or a need for additional family cover. Any changes made through a conversion option are free from fresh evidence of health, so its protects you against a decline in your health affecting your long term costs, if a policy extention or level term alteration is ever needed.

Mortgage Protection – Optional Benefits

Optional Cover

Serious Illness Cover
You may also want to add specified serious illness cover to create a more comprehensive policy, this cover can be used to pay off some or your entire loan if you are diagnosed with a specified illness listed on the policy. If chhoosing this optional added benfit you dont have to go for the full mortgage loan amount, it can be anywhere between 10% and 100% of the life cover amount that is equialent to the amount you are borrowing.

In addition, it is also important to understand that any specified serious illness claim payout will go directly to your mortgage lender to reduce your outstanding mortgage and not directly to you.


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