Mortgage Protection Spotlight
rd Dec 2020 |
We understand that it’s very tempting to opt for basic Mortgage Protection Insurance to save that little bit extra. But, it pays truely to understand that everybody can benefit from taking a little time out to understand all their options first, as choosing the correct Mortgage Protection policy from the outset can save you both time and serious money in the long run.
Most importantly you only get one chance to choose the level of flexibility you want to build into your Mortgage Protection policy, as once your policy commences you can’t add flexibility later!
Mortgage Protection Insurance Considerations:
Remember a mortgage is a long-term commitment, so thinking long-term when buying your mortgage protection policy really pays off! The following needs to be considered:
1. Extending the Policy Term
What if you switch mortgage loan providers in the future? If you don’t change the remaining loan term or outstanding loan amount then, there’s no issue with carrying across your existing mortgage protection policy, but if you need to extend the term to reduce payments, straight away you will be caught out unless you have your policy with AVIVA.
If not, you will have to make a brand new application and pay more, as you are older and any health decline will also mean added cost. Aviva is the only insurer in Ireland that allows both term and cover extensions under a free feature of their policy called “guaranteed insurability”. However, is often most suited to small extensions or attic conversions as the limit is 40K extra cover without the need for fresh health underwriting.
2. Extending the Policy Coverage
Most mortgage protection providers'(insurers) policies will allow life cover increases within certain limits (usually up to 100K) and for the best value, where loan term extension is not also required Royal London providers the leading policy solution.
3. Mortgage Repayment Breaks
What if ever got into a little financial difficulty over the term of your mortgage loan? you would hope this would never happen, but if you needed to take a break on your mortgage repayments, your mortgage lender is going to insist on a replacement, level term policy, meaning a fresh application and fresh health underwriting.
The solution here to hold a convertible mortgage protection policy with Royal London, so that you can keep your original health rates and convert your reducing cover to level cover.
4. Early Mortgage Loan Repayment
For the lucky few who manage to pay off their mortgage early, a very smart thing to do is to keep your mortgage protection policy, as you got it when you were younger and perhaps even healthier too.
But it’s even better if you can turn into a level family protection policy and this the best value solution is again a convertible mortgage protection policy with Royal London, meaning you can keep your original health rates if choosing to do so.
5. Protection against Accident or Illness
What if you fell ill or had an accident that kept you out of work how would you make your mortgage repayments? The solution is “Mortgage Repayments Protection” offered through AVIVA, which will cover your repayments for your full mortgage term, but this is not to confused with Mortgage Protection which is life insurance.
So, don’t forget you will need to keep up your mortgage protection life cover premiums too, here Zurich Life is the only insurer on the Irish market to offer automatic waiver of premium. Waiver of premium is an automatic additional benefit, which, if unable to work due to illness or disability, Zurich Life will pay your premiums after a period of 13 weeks has passed.
Instant Comparative Quotes
Here at One Quote, we are the only online broker that includes all mortgage protection quote options online allowing you to compare but basic and convertible premiums in an instant, inclusive of both price matching and full-term discounts!
Unless you have serious health conditions that may need a report from your GP, we can normally have your policy posted and emailed to you within 24 hours of application. Plus in making your application it can be fully completed online, so no posting or printing is required.
One Quote Financial Brokers: 01 845 0049
email: [email protected]