Mortgage protection insurance is a relatively straightforward type of insurance that will pay off the balance of your mortgage to your lender, should you die during its term.

You will be required to take out mortgage protection insurance by your lender in most circumstances, prior to drawing down the mortgage.

Mortgage Protection Insurance Quotes

Factors that affect the cost of mortgage protection insurance

Mortgage protection insurance will pay the amount outstanding on your mortgage, should you die during the term. Even though the amount you pay is fixed for the term of the policy, usually the amount of cover decreases in line with the remaining balance on the mortgage. 

This makes mortgage protection more affordable than other forms of protection and, unlike say life insurance, the key determinant in choosing between quotes for mortgage protection should be the cost.

So what factors affect the quote you will be offered by an insurance company for mortgage protection?

The amount of cover you will require on your mortgage protection insurance is directly linked to the size of your mortgage. gThis means that if you have a bigger mortgage, you will pay more for mortgage protection insurance.

Decreasing cover means that your mortgage protection policy will pay the balance of the mortgage which will go down as the term goes on. Having this type of decreasing cover will make your mortgage protection policy more affordable.

Level term cover means that the policy will pay out an agreed amount, whenever you die during the term of the policy. This type of cover will mean higher premiums.

The term of your mortgage protection policy will be the same as the term of the mortgage and may affect the price you pay for mortgage protection insurance. If you choose a longer term, you may pay more for mortgage protection.

The term of your mortgage may also be affected by your age, and this will also affect the premium you pay for mortgage protection. You will pay more for mortgage protection when you are older taking out the policy, sometimes even with a shorter term.

Generally, mortgage protection is taken out on a single life, joint life, or dual life basis. 

A single life mortgage protection insurance policy will pay out once on the death of the policyholder. A joint life mortgage protection policy will pay out if either policyholder dies, on a first death basis. A dual life policy will pay out twice, should both policyholders die during the term of the policy. 

A joint or dual life policy will cost more than a single life policy as two lives will be covered.

Generally, the older you are when you first take out mortgage protection, the higher your premium will be.The premium difference can vary between insurers, so shop around.

If you have a chronic health condition or you have a family history of health conditions, such as heart disease, stroke, or diabetes for example then you will need to disclose this to your insurer. This may mean that you will face a higher premium for mortgage protection insurance.

Different insurers will look differently on the various health conditions you may have so it is always worth getting multiple quotes for mortgage protection insurance.

If you smoke or vape you will receive a higher quote for mortgage protection insurance.

Having a job or hobbies that are perceived by insurers as dangerous will also mean a higher quote for mortgage protection insurance.

If you choose to add a conversion option to your mortgage protection, you will be able to change your cover during the term of the policy without providing new medical evidence to your insurer. This option will increase the premium of your mortgage protection.

If you purchase specified illness cover, also known as serious illness cover or critical illness cover, then your mortgage will be paid if you are diagnosed with one of a list of serious illnesses. This option will increase the price you pay for mortgage protection insurance sometimes by a considerable amount.

Who offers mortgage protection in Ireland?

The following insurance companies provide mortgage protection insurance in Ireland. Mortgage protection insurance can also usually be purchased from the bank when you arrange your mortgage.

Aviva - Home Insurance
Zurich - Home Insurance
FBD - Home Insurance

Mortgage Protection Quotes

Quotes can differ depending on the provider and your situation. Here are some examples of quotes to give you an idea of the cost of monthly premium for mortgage protection insurance.

Insurer Example 1*  Example 2**
VHI €14.08 – 25 year term
€16.28 – 30 year term
€44.15 – 20 year term
Laya €16.36 – 25 year term
€18.87 – 30 year term
€39.60- 20 year term
Royal London €11.25 – 25 year term
€13.29 – 30 year term
€35.354 – 20 year term
New Ireland €11.25 – 25 year term
€13.29 – 30 year term
€35.35 – 20 year term
Zurich €13.23 – 25 year term
€15.64 – 30 year term
€35.70 – 20 year term
Aviva €13.36 – 25 year term
€15.70 – 30 year term
€41.59 – 20 year term
Irish Life €15.15 – 25 year term
€16.90 – 30 year term
€47.37 – 20 year term

* Example 1 – Couple ages 29, 30 both non smokers, cover of €250,000.
** Example 2 – 46 year old, non smoker, cover of €350,000, term of 20 years

Mortgage Protection FAQs

Not always. It is best to be guided by price in purchasing mortgage protection. It is always best to shop around to get the best quote when buying any form of insurance, but especially mortgage protection given that it is a relatively simple form of insurance.

It is always best to have mortgage protection in place and the peace of mind it gives is invaluable.

However, your lender may not require mortgage protection to be in place if you are over 50, if you cannot get mortgage protection cover, or for an investment property. If you have adequate life insurance already, you may not need mortgage protection insurance.

Mortgage protection insurance pays off your mortgage if you die during the term of the insurance policy. Life insurance pays your family or dependents a lump sum if you die during the term of the policy. 

The key difference between the two forms of insurance is that mortgage protection is tied to your mortgage and the benefit paid will be paid to your mortgage lender to clear the balance of your mortgage.

If you run into difficulties in paying your mortgage, you must address this with your lender. Mortgage protection insurance is usually offered on the basis that your mortgage payments are up to date and you are not in arrears on your mortgage.

Get a free quote today!

Buying a house and arranging a mortgage is a busy and stressful time. However, we can take some of the hassle out of the process by assisting you with your mortgage protection insurance.

Mortgage protection insurance will be required by your lender and will give you peace of mind.

Use our assessment to find the best mortgage protection quote for you and your circumstances. 

Our qualified financial advisers are also on hand to answer any queries you may have.

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