Mortgage protection insurance is a type of life insurance policy that is specifically designed around mortgages. The basis for this type of cover is to address the need mortgage holders have to pay off the outstanding mortgage balance should either of the mortgage holders pass away. Lenders have, for some time now, required this type of life insurance as the minimum level of cover to allow a mortgage to be drawn down.
A mortgage protection policy is simply a decreasing term life insurance policy. Its starts off at specific amount covering either one or two people’s lives. For example sake let’s say your mortgage was 250k over 30 years. You can then take out a mortgage protection policy for €250k covering life A and/or B. The amount of cover will decrease over the 30 year term to zero. These policies are designed to clear any balance of your mortgage at any time during the 30 years term should either policy holder pass away without leaving a huge amount of change!
These type of policies are cheaper than most other types of life insurance as the pay-out insurers are liable for reduces as you get older when statistically you are more likely to meet your maker! Various providers offer this type of cover, some offer discounts and others try and enhance the policy somewhat to make it more attractive. Shop around or get in touch and we can find the best provider and premium for you.
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