Mortgage Protection

Mortgage Protection insurance is life insurance designed to pay off your outstanding mortgage loan on death. It can also include optional serious illness cover and can be set up as a single or dual cover policy. Learn about all your policy options, including our top tips, before running your best value instant market comparison quotes!

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Mortgage Protection Tips
Mortgage Protection Quotes


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!

Mortgage Protection Insurance

The Policy Basics

Mortgage Protection is necessary to protect both you and your mortgage lender and is compulsory on all Irish residential mortgages. The amount of life insurance cover needs to match your mortgage loan amount.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 and your policy commences, the price is always fixed, so already factors in the reducing cover.
 

Automatic Benefits & Features

Most providers offer added benefits and features at no extra cost so our best priced quotes always include all of these additions.

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.
  • 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 life insurance benefit covering your children.

Automatic Features

All Irish mortgage protection providers offer the flexibility to increase your cover in line with a revised mortgage subject to cetain conditions and limits.

  • Guaranteed Insurability – The ability to increase your cover in line with an extended mortgage loan, without having to make a new mortgage protection application.

 

Optional Benefits & Features

Your mortgage lender can only insist on basic mortgage protection life cover, so adding optional Serious Illness Cover and or a Conversion Option is entirely up to you.

Optional Cover

Serious Illness Cover
This additional cover can be used to pay off some or all of your mortgage if, you are diagnosed with a specified illness listed on the policy.

If choosing this optional added benefit, you don’t have to go for the full mortgage loan amount, unlike your life cover amount that needs to match your mortgage borrowings, serious illness cover can be anywhere between 10% and 100% of your mortgage loan amount.

Optional Feature

Conversion Option
A Conversion Option allows you to extend your policy cover term in line with a new or extended mortgage and to convert from a decreasing cover Mortgage Protection policy to a level cover Life Insurance policy, should more life cover be needed in the case of a change in your health. Any policy changes made through 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 where your mortgage needs or health needs may change.
 

Mortgage Lender Assignment

Steps to Lender Assignment

Except in the case of investment properties, your bank or mortgage lender can insist on taking ownership of your mortgage protection policy. This is done through the completion of a single page legal document called a “Notice of Assignment” that they provide to you in your loan pack.

The steps to completing your mortgage protection assignment process are as follows:

1. Obtain your mortgage protection policy schedule form One Quote.
2. Complete your bank’s “notice of assignment” witnessed by your solicitor and return it to your bank together with your policy schedule.
3. The insurance company will then note your mortgage lender’s interest in completing the process.

Only if your lender is Ulster Bank should you return the notice of assignment to [email protected]

 

Why Choose OneQuote.ie for Mortgage Protection

Best Benefits & Price

Our free mortgage protection insurance quotes comparison service lets you easily compare quotes from all of Ireland’s leading insurers, including; Aviva, Irish Life, New Ireland, Royal London, and Zurich Life.

Our 2 person dual cover quotes (offer double claim pay-outs) based on full-term policy discounts of up to 25% and also uniquely allow you to compare the cost of including a Conversion Option for additional health and financial protection, plus we promise to beat any competitor quote including all insurer direct discounts – GET QUOTE!

 

Mortgage Protection Q&A

Top 10 Questions Answered

Why do I need mortgage protection insurance?
Mortgage lenders require that you take out mortgage protection or life insurance before they’ll allow you to draw down a mortgage. This is because they want assurance that the loan will be fully paid off in the unlikely event of your death during the term of the mortgage.

What’s the difference between mortgage protection and life insurance?
Life insurance pays out a lump sum should you die during the chosen term of your policy and is used to protect your dependants. This sum remains constant and or with indexation can increase each year along with the premium to help keep up with inflation.

With mortgage protection, the lump sum decreases each year to broadly match the outstanding balance on your mortgage. This makes it much cheaper than regular life insurance and the premium always remains fixed.

How much does mortgage protection cost?
The cost of mortgage protection will depend on several factors such as the size of your mortgage, your age and health status, and whether you want a single-life or joint-life cover policy. Smokers will also pay more for cover than non-smokers. Use our mortgage protection comparison service to find out the price of cover for you.

How long does it take to get my mortgage protection policy?
If you have no health issues, you can have your policy documents within 24 hours from your application return.

Do I need mortgage protection if I already have life insurance?
Generally, mortgage protection is designed to pay off your mortgage if you die, not to provide a cash sum to your dependants. So you’ll usually need separate life insurance to provide a cash lump sum if you have a dependant family.

You can, if you want, use an existing life policy for mortgage protection by assigning it to your mortgage provider, so long as the amount you’re insured for is at least equal to the value of your mortgage and it runs for the same term. Should you die before the life insurance policy ends, the mortgage will be cleared and the balance paid to your dependants.

Do I have to buy mortgage protection insurance from my mortgage lender?
No. By law you’re under no obligation to buy mortgage protection from your bank. A bank can’t refuse you a mortgage if you decide to get mortgage protection elsewhere. So, you’re free to shop around to find the best value protection for you!

What happens to my mortgage protection if I decide to switch mortgage provider?
If you decide to switch mortgage provider you don’t need to take out a new policy. You can simply reassign your existing policy to your new lender. Your premium and level of cover will remain the exact same as long as the amount you borrow and the term of your mortgage hasn’t changed.

How to compare mortgage protection policies in Ireland?
Comparing mortgage protection policies is easy with bonkers.ie. Just fill in some simple details such as your age, the amount of cover you want, and the term the policy should run for using our online comparison service, and we’ll compare policies from Ireland’s main providers producing your best value quote in just seconds.

Should I include Serious Illness Cover on my quote?
The answer is that’s up to you as your mortgage lender can only insist on a policy with life cover, but we would recommend considering this additional protection if affordable and especially if you don’t have any other Serious Illness cover already in place.

How do I note my mortgage lenders interest on the policy?
Your mortgage lender (bank) will need to receive (1) your mortgage protection insurance policy schedule and (2) your completed deed of assignment from you. Once they are returned to them, they need simply contact the insurance company to have their interest noted. Then once the bank has confirmation of the assignment, they will issue your mortgage cheque.

 

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