Mortgage protection is a form of life insurance which pays off the outstanding
balance on your mortgage should you die before the mortgage is fully repaid.
It is generally compulsory for all mortgage holders in Ireland.
Mortgage lenders will require that you take out mortgage protection or life
insurance before they’ll allow you to draw down your mortgage. This is because
they want assurance that the loan will be fully paid off in the unlikely event
of your death during the term of the mortgage.
The cost of mortgage protection will depend on several factors such as the
size of your mortgage, your age and health status, and whether you want
single life cover for just you, or joint life cover for you and your partner
for example.
Smokers will also pay more for cover than non smokers.
Just use our free mortgage protection comparison service to find the
price of cover for you in minutes right now.
Life insurance pays out a lump sum should you die during the term of the policy.
This sum remains constant and with indexation can increase each year to help
keep up with inflation.
With mortgage protection, the lump sum decreases each year to broadly match
the outstanding balance on your mortgage. This means it tends to be cheaper
than life insurance.
Generally, mortgage protection is designed to pay off your mortgage if you die,
not to provide a cash sum to your dependants. So you’ll usually need separate
life insurance to provide a cash lump sum if you have a dependent family.
You can, if you want, use an existing life policy for mortgage protection by
assigning it to your mortgage provider, so long as the amount you’re insured
for is at least equal to the value of your mortgage and it runs for the same
term. Should you die before the life insurance policy ends, the mortgage will
be cleared and the balance paid to your dependants.
By law you’re under no obligation to take out mortgage protection with
the same lender or bank that is giving you your mortgage.
Banks and lenders will usually try to sell you their own mortgage protection
prior to you drawing down your mortgage loan. However banks are tied to a sole
life insurer and can offer you one just price for mortgage protection. Here at
bonkers.ie we compare prices across multiple insurers to find the best cover
for your needs. And when it’s time to buy, you can apply online on our site
in just minutes and we’ll stay with you right through until your policy has issued.
In addition our dedicated team of in-house insurance specialists can arrange
cover for mortgage protection in as little as one hour in some cases so there
is no need to worry about any impact or delay using us might have on your
mortgage application or drawdown date.
Comparing mortgage protection policies is easy with bonkers.ie.
Just fill in some simple details such as your age, the amount of cover you want,
and the term the policy should run for using our online comparison service, and
we'll compare policies from Ireland's main providers and produce a quote for
you in just seconds.
You can then apply online with us. Our in-house insurance
specialists will look after you right until your policy has issued and in some
cases we can get your policy live in less than an hour!
If you’re already paying for mortgage protection insurance you can switch your
policy at any time with bonkers.ie as you are not tied into any contract with your insurer.
Mortgage protection premiums have decreased considerably over the last five
to 10 years, so you could be overpaying on your existing policy.
At bonkers.ie our size means we can offer deep discounts so allow us to
compare the market on your behalf and start making you a saving today.
