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What is Mortgage Protection?
Mortgage Protection is a dedicated type of life insurance. It helps secure the ownership of your home by paying off the outstanding mortgage if you die within the specified term. Your family would therefore be relieved of the financial burden of repaying the mortgage, should the unexpected happen. Most banks will require that you have mortgage protection in place prior to granting you a mortgage.
Benefits of Mortgage Protection Insurance
Mortgage protection and Life Insurance are one and the same thing. The policy pays out a cash lump sum if you die to clear your mortgage balance.
When taking out Mortgage Protection you can often add on a Specified Illness plan which will provide a cash lump sum to help you continue to pay off your mortgage and other bills should you be diagnosed with one of the specified Illness covered.
Some important points:
- You must be aged between 18 and 74.
- The maximum term is 40 years or up to age 85.
- You must keep up your payments to stay on cover.
- The amount you pay is guaranteed to stay the same for the entire period that you are insured for.
Your MortgageLine Adviser will give advice on the available options and make sure you get a competitive quote.
How Does Mortgage Protection Work?
When you take out a mortgage, lenders generally require that you have this life insurance coverage to ensure that your mortgage payments are managed if you’re unable to make them due to unpredictable events. Here’s how it works: you pay a monthly premium over a specific term, which is usually aligned with the length of your mortgage.
In the unfortunate event of your death or if you are diagnosed with a serious illness specified in your policy, the insurance will provide a lump sum payment. This payment is intended to cover the remaining mortgage balance, thereby relieving your family or dependents of the financial burden.
The amount of coverage typically decreases over the policy’s life, paralleling the decrease in the remaining balance of your mortgage. This means that as you pay down your mortgage, the potential payout from the policy reduces correspondingly. This type of structured decrease is known as “decreasing term insurance,” reflecting the decreasing liability on your mortgage as you gradually pay it off.
Marcin Trawinski2024-06-20I would like to say THANK YOU to all mortgage line Team especially to Kevin Fitzharris for profesionalizm and support in buying my first home.
LITTY RENJU2024-06-13We are very impressed with the service provided by Billy Dore . Billy found a mortgage product with a competitive interest rate that suited our needs. His dedication and expertise were evident throughout. He also provided detailed instructions, chased the conveyancer, and kept us updated with clear timelines. They made the process swift and stress-free, which we needed. We highly recommend The Mortgage line for their outstanding service. Thank you, Billy Dore and the entire team.
Cristina Guja2024-05-29So happy working with them, our broker was Mihaela Cordos , she is so talented and helps us with all queries, thank you 😊
FARHAN SIDDIQUI2024-05-29Thank you so much to the MortgageLine team, and especially to Mayur, for facilitating the mortgage and other insurances for my house in Lucan. Mayur has been very patient and professional in answering my novice questions and he always made sure that I understood the details correctly. I wish all the best to you and your team.
Rohit Chanan2024-05-29Can’t thank enough. Mayur had been really helpful from start to end. Entire process got completed within 4-5 weeks time. At every step I had received a call from Mayur to go over the mortgage journey. It was worth every single penny spent and will be coming back should I need to switch the mortgage in the future. Thank you Mayur and Mortgage line for all your support!
Julien Lazare2024-05-21Kevin and his team at Mortgage Line provide a service that is so good, I almost want to start another mortgage. Jokes aside, I highly recommend them to anyone looking for professional advice when applying for a mortgage.
Faith Kelly2024-05-14I cannot recommend the team at mortgage line enough. Jan Pawel Wejs looked after me throughout my mortgage switching journey and he made the whole process so much easier and stress free. He is professional , friendly and highly efficient and will recommend him and the team to friends. Thank you Jan , keep up the super work!! Serena Keating
Guru vidhya2024-05-09Jan Pawel from mortgaeline really helped us to buy our new house in a smooth way which I never imagined would happen. Thank you Jan we had very good and positive experience throughout the process. My best wishes for you and your whole team.
Stephen Madigan2024-05-08I have been a client of mortgageline for the past couple of years since I was going buying a house to starting a self build The staff are very friendly and respond quickly to any questions I was able to get AIP quickly for all mortgages The only negative thing I can say is that the self build mortgage took around 6 months to reach the loan offer stage and I am still unsure where the source of the delay is… Apart from the is hiccup I got the highest mortgage possible as a single person and was given mostly good advice throughout
ayeecha naseem2024-05-07Mortgage line is for sure better than 5 star service. It would be hard for anyone to believe that from application submission to approval it took me 8 working days in total all due to continuing efforts of Kevin. He’s Definitely one person I would remember always for making my 1st home mortgage approved all according to my plans. Thanks a lot, it’s highly appreciated and recommend.
Frequently Asked Questions
What Specific Benefits Does Mortgage Protection Insurance Offer?
Mortgage Protection Insurance in Ireland is designed specifically to cover the balance of your mortgage in the event of your death, ensuring that your loved ones aren’t burdened with monthly mortgage payments during a difficult time. Unlike General Life Insurance, which provides a predetermined lump sum to beneficiaries upon the policyholder’s death, Mortgage Protection Insurance directly settles your outstanding mortgage debt.
This direct application of benefits is especially valuable for those who want to ensure their family can retain their home without financial strain. Additionally, Mortgage Protection policies may include features such as a Specified Illness cover, which allows a lump sum to be paid out if you’re diagnosed with a serious illness covered by your policy, helping with mortgage payments and other expenses during your illness.
Can I Use My Mortgage Protection Insurance to Include Serious Illness Coverage?
Yes, when arranging Mortgage Protection Insurance, you can opt to add coverage for specified serious illnesses. This inclusion means that should you be diagnosed with a critical illness listed in your policy, you can receive a lump sum to help manage not only your mortgage but also other related financial obligations, such as daily living expenses and medical bills.
This feature provides an additional layer of financial security, ensuring that you can focus on recovery without the added stress of financial constraints. It’s important to review the list of covered illnesses with your adviser, as it varies between policies and providers.
What Are the Eligibility Criteria and Coverage Limits for Mortgage Protection Insurance?
To be eligible for Mortgage Protection Insurance in Ireland, individuals must be aged between 18 and 74 at the time of application. The maximum coverage term usually extends to 40 years or until the policyholder reaches the age of 85, whichever comes first. These terms ensure that coverage is available during most of an individual’s working life and into retirement.
Regular premium payments are crucial to keeping the insurance active. The premium rates are designed to remain constant throughout the policy’s term, offering predictable financial planning without unexpected increases.
How Does the Decreasing Term Feature in Mortgage Protection Insurance Work?
Mortgage Protection Insurance typically operates on a decreasing term basis, meaning that the coverage amount diminishes over time, in line with the decreasing mortgage balance. This feature aligns the insurance payout with the outstanding mortgage liability; as you continue to pay off your mortgage, the potential insurance benefit decreases.
This structured reduction ensures that you are not over-insured and helps in keeping the insurance premiums lower compared to a level-term life insurance policy, where the benefit amount remains constant throughout the term.
How Do I Ensure That I Have the Most Suitable Mortgage Protection Insurance Plan for My Needs?
It is advisable to speak with a qualified MortgageLine Adviser who can assess your specific financial situation and future needs to recommend the most appropriate Mortgage Protection plan. Our advisers consider factors like your mortgage amount, the term of your mortgage, your health, and your family’s financial needs to tailor coverage that provides peace of mind. We can also help you compare different policies and ensure that you receive a competitive rate. To get advice on the best mortgage protection in Ireland, Contact Us Today!
