Frequently Asked Mortgage Protection Policy Questions
How much cover do I need?
For switches, you will need to ensure that you have covered the full outstanding balance on your mortgage, for the remaining term of your mortgage. The policy term must be whole years, covering all of the remaining loan period, so say you have 16 years and 3 months remaining, you need to apply for a 17-year policy term, however once 16 years and 3 months have passed you can cancel your new policy.
For new mortgages, you need to cover the amount you are borrowing, over the term of your mortgage, i.e. if you are borrowing €280,000 over 25 years; then you will need cover for €280,000 over 25 years.
Beyond the minimum bank requirements described above, if you would also like to further protect your partner, spouse and or dependants under the same policy, as you don’t already have separate family life cover, then in addition to covering the mortgage loan, you should opt for level cover.
What's the minimum type of cover to satisfy my bank?
The minimum type of cover you need depends on the type of mortgage you have. If you have a capital and interest mortgage, sometimes called an annuity loan, where the amount you owe reduces gradually; you need a standard”Reducing Cover – Life Insurance policy”.
If your mortgage is “Interest Only”, where you are only paying the interest on the loan, then you need a “Level Cover – Life Insurance policy”.
If you are seeking to protect your mortgage loan, but would also like to further protect your partner, spouse and or dependents under the same policy, as you don’t already have separate cover, then you should consider a Level Term – Life Insurance policy.”]
Does my premium reduce as well as the cover?
Where you have chosen a standard Mortgage Protection reducung cover policy, the discounted premium quoted already takes into account of the fact that the cover will reduce alongside your mortgage loan. If you want to see the cost of non-reducing cover, run a level quote to compare the difference.
Should I add optional Serious Illness Cover?
The answer is yes, you are four times more likely to get diagnosed with a serious illness before the age of 65, than you are to die, (Source: Zurich Life: Protecting you from the biggest risk you’ll face, pg.2). It’s also the cheapest way of having some level of serious illness cover in place which is always preferable.
With that said, It’s important to understand that adding serious illness cover to a Mortgage Protection policy means the cover is assigned to your bank, so if a claim occurred any benefit pay out would go to the bank and not directly to you. This would of course have the beneficial effect of reducing your mortgage repayments which would ease the financial burden of being seriously Ill. If considering adding serious illness, we would recommend speaking with one of our professional financial advisors, to help decide on which option is most suitable for you.
What is Accelerated Serious Illness Cover?
Accelerated serious illness cover is a type of cover that can be taken out as an add-on to a mortgage protection policy. It pays out a tax-free lump sum if you are diagnosed with an illness specified in your policy, or if you die within the term of your policy. Two sums will not be paid out over the course of your policy, unless pay-out only occurs only on part of your cover in the first instance.
How long does my quote remain valid?
All quoted premiums assume standard medical acceptance and remain valid 7 days. Once you apply your quote is fixed, subject only to age change, each calender quarter.
When should I apply for cover?
If you already have your loan and are switching your mortgage protection policy, you should apply straight away.
If you are currently applying for a new mortgage, then you need to apply approximately 1 month before you want to draw down on your loan. If you have any health issues you may need to apply sooner.
How do I apply for cover?
Run your instant market comparison quote and complete and return your on-line application form, alternatively, lo call 1890 727 111, if your policy is needed urgently.
What start date should I put on my application?
If switching your policy, then enter a policy start date matching your existing policies next direct debit date.
If it’s for a new mortgage loan, then enter a policy start date corresponding to your intended loan draw down date. Don’t worry if your loan is delayed you can change this anytime.
Do I have to note the lenders/banks interest on the policy?
No, all lenders provide a simple form called a notice of assignment that you complete on receipt of your policy documents. Ulster Bank also write to the insurer on your behalf for an additional letter they require.
When will I receive my policy documents?
You tell us your required start date. Processing your application normally takes a minimum of 2 working days from our date of receipt, or up to 3-4 weeks, if you have any long term health issues, that may require medical reports. Once you return your application we will call us to discuss this.
How will I receive my policy documents?
Your policy documents will be posted, or emailed as you require. The original Policy Schedule should be given to your mortgage lender and the copy set you should retain for your own records.
What happens if a claim occurs?
If a life insurance claim occurs, the proceeds of the policy automatically go to pay off the mortgage loan and the policy ceases. If there is any surplus left over, it would be paid tax free to that person’s estate.
If a serious illness claim occurs, the benefit payment is made to your lender. If your Serious Illness cover is equivalent to the mortgage loan amount, your mortgage loan is then cleared, if it’s for a lesser amount, then any balance remains outstanding on the mortgage loan and your mortgage repayments will be reduced.
How do I ensure best value for money?
We compare all leading mortgage protection insurance providers in Ireland, to ensure the best cover at the best market price.
When you run your quote, our website will display not only the best price, but also the merits of the recommended insurer and the recommended product. Our qualified independent advisors, are also at hand to answer any questions and to make sure you choose a product that best suits your personal circumstances and budget. Policies offered are free from premium reviews and our “lowest price guarantee” means we refuse to be beaten.