Mortgage Protection

Mortgage Protection is life insurance designed to pay off your mortgage lender, it can also include optional serious illness cover and be arranged on a level, or reducing cover basis. Our on-line quote calculator, provides the cheapest instant mortgage protection insurance quotes in Ireland.

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Mortgage Protection top-tips
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Mortgage Protection top-tips

  1. If a new mortgage, make sure to apply at least one month before draw-down date, no payments will be taken until after policy issue and we provide the first month free.
  2. If switching to save, apply any time as the first month free will prevent any payment overlap.
  3. If opting to include serious illness and getting quotes elsewhere, make sure to compare the illnesses covered.

Compare Mortgage Protection Quotes

We Make it Simple

OneQuote.ie makes Mortgage Protection insurance, easier and much more affordable.

Through our comprehensive mortgage protection insurance comparison service, from quotations and application to policy receipt, you can trust us to deliver the lowest prices, for both new mortgage life insurance and mortgage insurance policy switchers.

Value Comparison

We instantly compare mortgage protection policies from all of Ireland’s leading insurers, including; Aviva, Friends First, Irish Life, New Ireland, Royal London and Zurich Life and then apply our discount, to guarantee you the cheapest priced mortgage protection available anywhere on the Irish market. What’s more, all insurer policies we provide, include extra benefits at no extra cost and allow the first month free!

For both reducing and level policies, single, or joint cover, or a policy which includes serious illness, at Onequote.ie, you can instantly quote the best value mortgage protection policy, to suit your unique requirements.

Easy Application

Once you run your quotes your application form will be automatically emailed to you, while you can also choose to apply instantly over the phone.

Policy Document – Bank Assignment

We process your application immediately and issue your documents based on your specified start date, with the first month free. On your receipt, you simply provide them to your bank, sign their assignment form and you’re all done.

Choosing the Mortgage Protection You Need

Compare Mortgage Protection – Policy Types

The phrase Mortgage Protection most commonly refers to reducing term life insurance. The policy has a term identical to your mortgage and the cover reduces as the balance on your mortgage decreases. However, any life insurance policy that is assigned to a mortgage lender, against a mortgage loan is in effect a mortgage protection policy.

The minimum mortgage lender requirement is for “reducing term life insurance – mortgage protection” to cover your mortgage loan, but before choosing the basic standard policy, we recommend taking a few minutes to review and select the mortgage protection policy option, that best suits for own specific needs:

  1. Reducing term life insurance – Standard Mortgage Protection
    This represents the cheapest form of mortgage protection, the life insurance is arranged to match your mortgage loan term, with the life cover reducing in-line with the outstanding mortgage loan. This type of policy is best suited to first time buyers without dependents, those restricted by budget, or for people who have dependents, but already have separate and adequate life insurance in place.
  2. Reducing term life insurance with serious illness – Mortgage Protection
    The same as the reducing cover mortgage protection policy described above, but with serious illness insurance cover included. This policy type is best suited to first time buyers without dependents, who can afford to add this additional protection, or to people who need mortgage protection life insurance and don’t already have any serious illness cover in place.
  3. Level term life insurance – Mortgage Protection
    Level cover as the name suggests, means that the cover stays level and this type of policy is a requirement for an interest only mortgage loan. It also however deserves consideration by anyone with dependents with a standard mortgage, who needs and can afford additional life cover. As with any mortgage protection policy, the bank is paid off in the first instance, but any balance of life cover on a level cover policy would then be payable to the deceased’s estate.
  4. Level term life insurance with serious illness – Mortgage Protection
    The same as the level cover mortgage protection policy described above, but with serious illness insurance cover included. This policy type is best suited to first time buyers with dependents, who can afford to add this additional projection, or to people who need mortgage protection life insurance and don’t already have adequate life and serious illness cover in place.

Conversion Option:
No matter which mortgage protection cover basis you choose, you should always consider including a Conversion Option, as this valuable option provides the following advantages:

  1. During your policy term – All policy types: Should your financial circumstances change, it allows you extend the term of cover in line which an extended mortgage term, or convert from a decreasing term policy to a level term policy, to match an interest only mortgage.
  2. Towards the end of your policy term – Level Cover only: Allows you to take back full policy ownership form the bank, once your loan is cleared. This way you can continue to protect your dependants, while maintaining best value for money.

Note:
Adding a conversion option will add circa 5% to your discounted premium and where it’s a two-person policy, we provide dual cover benefits at no extra cost (reducing cover only), meaning unlike standard joint cover, there are 2 possible pay-outs on the life cover and where chosen, on the serious illness cover.

Mortgage Protection Policy Examples

Mortgage Protection – Different Policy Examples

Example 1: Reducing term life insurance cover 
David & Elaine have a standard repayment mortgage of €240,000 over a 25-year loan term. Their bank requires them to have a Mortgage Protection plan for €240,000 over 25 years. In year 12 David has a sudden heart attack and dies. The current level of cover on the mortgage protection plan is €120,000. Similarly, the outstanding mortgage has reduced to circa €120,000. A claim is made on the life insurance policy and the lump sum is paid directly to the lender to clear the mortgage.

Example 2: Reducing term life insurance cover with serious illness 
John & Claire have a standard repayment mortgage of €280,000 over a 20-year loan term. Their bank requires that they have a Mortgage Protection plan for €280,000 over 20 years. They decide to include serious illness and pay an additional premium for this benefit. Should John or Claire suffer a defined serious illness, then the insurer would make the serious illness claim payment to the bank. It’s worth noting that you do not have to have your whole mortgage covered for serious illness. It can be expensive, but even having half, or a percentage of your mortgage covered for serious illness can give you that extra peace of mind.

Example 3: Level life insurance cover 
Mike & Diane have a standard mortgage of €180,000 over a 22-year loan term. Their bank requires that they have a Mortgage Protection plan for €180,000 over 22 years. They have a young child, but don’t have any other life insurance in place to replace the lost income that would be needed to support the family, even with the mortgage paid off. They decide to pay a higher premium for level insurance cover, which means any balance of life insurance cover beyond the outstanding mortgage loan would go to the deceased’s estate and not the bank.

Example 4: Level life insurance cover with serious illness 
Jack & Mary have a mortgage of €320,000 over a 16-year loan term. Their bank requires that they maintain a Mortgage Protection plan for €320,000 over 16 years. They both work and have 2 children, but they only have a small separate life insurance policy on Jack only and don’t have any serious illness cover in place. They decide to pay a higher premium for level insurance cover, which includes accelerated serious illness benefit of 50% of the life cover amount. This means that should either party suffer a defined serious illness, part of the claim pay-out would go to the bank and any balance would be payable to the claimant directly. Similarly, should a death claim occur during the term of the policy, any balance of life insurance cover beyond the outstanding mortgage loan would go to the deceased’s estate and not the bank.

Satisfying the Bank

Mortgage Protection – Lender Requirements

Your bank, or mortgage lender will always try to sell you Mortgage Protection insurance and when you tell them you are using a broker, they may try and pressure you for proof of your Mortgage Protection policy application. If they do, simply tell them that you have made an application through your broker and will provide them with policy documents, in advance of loan draw down.

Policy Assignment

You don’t need to record the banks interest on your Mortgage Protection Application form, as the bank uses their own legal document known as a “deed of assignment”. A deed, or notice of assignment is simply a one-page document that the bank provides and you sign and date when handing over your Mortgage Protection policy documents. It is the bank who then write to the life insurer to note their interest on the policy.

Switching to Save

Switching Mortgage Protection Provider

Switching mortgage protection on your exisiting mortgage loan, can save you thousands over your policy term and here at OneQuote.ie, we make the switching process simple, we even give you the first month free, to ensure no payment overlap occurs.

Switching in 3 simple steps:

  1. Run your discounted quote and apply.
  2. Start your new new policy with the first month free.
  3. Hand your new policy documents over to your bank, sign their “Assignment Notice” and instruct them to cancel your old policy and you’re done.

Mortgage Protection – Frequently Asked Questions

How much cover do I need?

You will need to ensure that you have covered the current 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 when 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 dependents under the same policy, as you don’t already have separate life cover, then in addition to covering the mortgage loan cover you should add an amount to help replace loss of income and opt for level cover.

What type of cover do I need?

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 Reducing Term – Life Insurance policy.

If your mortgage is “Interest Only”, where you are only paying the interest on the loan, then you need a Level Term – 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.”

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.

How long does my quote remain valid?

All quoted premiums assume standard medical acceptance and remain valid for 30 days, based on age each quarter.

When should I apply for cover?

If you already have your loan and are switching your mortgage protection policy, you should apply at least 2 weeks before your next policy direct debit, and if you have any medical conditions which may delay the new policy, apply at least 3-4 weeks beforehand.

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 721111, 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?

It normally takes a minimum of 3-5 working days from our date of receipt to have your policy ready, or 3-4 weeks, if you have any health issues. You enter your required policy start date on your application form and the earliest we can release your documents is 30 days prior to this start date.

How will I receive my policy documents?

Your original policy documents will be emailed or posted at your request. These originals should be given to your mortgage lender and the copy set you should retain for your own records. If you want the original set posted directly to your bank, just email us instruction with a name and email address.

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 the lender, if your chosen cover is equivalent to the mortgage loan amount the mortgage loan is cleared, if for a lesser amount then any balance remains outstanding on the mortgage loan and 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 “best value guarantee” means we refuse to be beaten on price.

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