Buying a home is a big achievement. One such question, and an important one, is mortgage protection. However, this should not be the most exciting part of a thrilling process. So what exactly is it? Why is it essential? And how do you know your options in Ireland?
Mortgage protection pays off a mortgage when the policyholder dies before the term ends. In Ireland, it is generally a requirement when you take out a mortgage on your primary residence; exceptions include investment properties or where there is already a life insurance policy that can be assigned to the lender.
How to Find the Best Mortgage Protection
Let’s go through the steps to find the best mortgage protection plan:
Step 1: Shop Smart
Mortgage protection policies are required for most residential mortgages in Ireland, but there are a few variations to be aware of.
Most people select decreasing term cover as the mortgage amount decreases over time. A smaller number of people go for level term cover, which gives you a fixed lump sum regardless of when the claim is made in the term of the mortgage. This is useful if you are on an interest-only mortgage or if you just want to give your family a little extra peace of mind.
At Malahide Insurance Shop, there’s access to quotes from Ireland’s leading providers:
- Zürich Life Assurance
- Royal London
- Aviva Life and Pensions
- New Ireland Assurance
- Irish Life
Why settle for one when you can compare them all?
Step 2: Know What Affects the Price
Your own personal situation plays a big role in choosing the right cover.
- Age
- Health status (smoker and non-smoker)
- Loan amount & term
- Whether the policy is single, joint, or dual-life
This is where a broker’s insight is really valuable. We can match you with providers who are more lenient about health conditions or offer better terms based on your needs.
Step 3: Bundle Smart
Many people add specified serious illness cover to their mortgage protection. That way, if diagnosed with a condition like cancer, heart disease, or stroke, there’s a lump-sum payout to help cover medical costs, mortgage repayments, or even take a break from work. It is designed to partially clear the mortgage in the event of a serious illness.
Still working? Then income protection might be worth considering, too. If illness or injury stops someone from working for a long period, this policy pays out a regular income—like a financial backup plan when life throws a curveball.
What to Watch Out For
Some key features to look for when comparing policies:
- Guaranteed premiums – so prices won’t creep up every few years
- Conversion options – in case a long-term policy is needed later
- Indexation – to keep up with inflation, if desired
- Waiver of premium – which suspends payments during serious illness or disability
A good broker will walk through all of this in plain language—no confusing terms, no pressure, and no nonsense.
Don’t Forget to Review Your Cover
Whether you’re refinancing, starting a family, or improving your health, it’s a good idea to review your policy every few years. A quick review could lead to a better premium or more suitable benefits, especially if you originally took out cover when you were in a rush to close on your home.
Conclusion
Mortgage protection is not only a requirement; it’s an important aspect of financial planning. It protects your home and peace of mind for you and your loved ones. If you are aware of your choices and are willing to ask for help, you can find a policy that provides comprehensive protection to you and your loved ones based on your very own situation.
If you would like personalized advice and solutions to find the best mortgage protection options, then get in touch with Malahide Insurance Shop and let our experts find the policy that fits your needs. We can guaranteed the best quote – Switch & Save up to 30% from your current provider.
