What is Mortgage Protection?
Mortgage protection, also known as life insurance or life cover, is designed to ensure that if you were to die during the term of your mortgage protection policy, the remainder of your mortgage will be paid out to your lender by your insurance provider.
Why do I need Mortgage Protection?
Having mortgage protection is something required by all lenders, meaning that you will not be able to drawdown your mortgage without it.
Having mortgage protection ensures that if you were to die whilst your mortgage is still active, the insurance company would pay out the remainder of your mortgage to your lender. This acts as insurance for your lender, and also ensures that your beneficiaries won’t have to worry about making the rest of your mortgage payments in your absence.
How do I take out/update my Mortgage Protection?
If you already have mortgage protection:
If you are a switcher and already have mortgage protection, you will need to get your existing mortgage protection policy and benefits statements, and make sure that these are up-to-date. We at moneysherpa can request your existing mortgage protection policy and your benefits statements from your mortgage provider with your permission.
It’s important to note that your mortgage protection must match the loan amount as well as the loan term. For joint applicants, both parties will need mortgage protection.
If you need to take out mortgage protection.
If you are looking for a new mortgage protection policy, or if your current mortgage protection policy doesn’t match your loan amount or loan term and you need to take out a new one, we at moneysherpa are able to get you a quote through our partners over at DFP.
However if you wish to take out a mortgage protection with a different provider, you can look around on different insurance providers websites. We have an article looking at the best mortgage protection providers in Ireland, as well as what to look out for when choosing the best mortgage protection provider that you can read here.
Key Takeaways- Mortgage Protection.
So to summarise, here are some key points outlining all you need to know about mortgage protection:
- It is required by all lenders, meaning you cannot get a mortgage without it.
- Your mortgage protection must match the loan amount as well as the loan term.
- If your existing mortgage protection doesn’t match the loan amount or loan term, you will need to get a new mortgage protection policy.
- For joint applicants, both parties need to take out mortgage protection.
- If you are switching and already have mortgage protection, you will need your existing mortgage protection policy and benefits statements to be up-to-date. We at moneysherpa can request these documents on your behalf.
- If you don’t have mortgage protection or need to update your policy, we can get you a quote through our partners over at DFP.
Despite mortgage protection being a requirement from lenders, we at moneysherpa believe taking out mortgage protection cover makes good financial sense for you, as this cover offers security that your beneficiaries can continue to afford the home and maintain their quality of life even in your absence.
For more information on the best mortgage protection provider in Ireland and what to look out for when choosing your mortgage protection, you can visit our “Best Mortgage Protection Insurance Ireland 2023” article.
