Mortgage Protection or Mortgage Life Insurance is designed to pay off the balance of an outstanding mortgage in the event of death. Mortgage Protection is typically a reducing Life Cover plan where the sum assured will reduce as the level of your outstanding mortgage reduces. Because the level of life cover reduces over the term of your mortgage this will typically make a Mortgage Life Insurance policy cost less than other types of Life Insurance plans.
Mortgage Life Insurance can either be taken out as a single Life Cover plan or as a joint Life Cover plan. Single Life Cover will pay out if the person named on the policy dies; it is designed to clear an outstanding balance of a mortgage. Joint Life Cover will have both persons named on the policy and will only pay out on the death of either party. This is also known as a ‘joint life first death’.
A Mortgage Protection policy will have a guaranteed premium over the term of the policy and therefore the cost of a Mortgage Protection Policy will never increase. It is also possible to add Serious Illness cover as a benefit to your Mortgage Protection plan. Serious Illness Cover typically covers over forty specified serious illnesses such as cancer, heart attack and strokes. Serious Illness Cover – as part of your Mortgage Protection Life Insurance plan – will always be an ‘Accelerated’ benefit. If your mortgage protection policy has a serious illness benefit included and you make a claim for a serious illness, the level of this benefit will reduce the level of your Life Cover remaining on your Mortgage Life Cover plan.
The cost of your Mortgage Protection Policy will depend on your age, health, smoker status, remaining mortgage term, and the balance outstanding on your mortgage. At Yourbroker we will search the full Irish market to provide you with the best possible Mortgage Protection plan at the best possible premium.