A Mortgage Protection Policy in Ireland: Everything You Need to Know

“A Mortgage Protection Policy in Ireland: Everything You Need to Know”

Are you thinking about getting a mortgage for your new home? If so, it’s important to understand the importance of a mortgage protection policy and the options available to you. In this article, we’ll cover everything you need to know about mortgage protection policies. From the types of policies available to what happens to your policy if you decide to switch your mortgage.

Why Do You Need a Mortgage Protection Policy?

When applying for a mortgage to purchase your home, you are required to have a mortgage protection policy in place. This policy is designed to protect you in the event of your untimely death or, if selected, the diagnosis of a specified serious illness that leads to an inability to pay for your mortgage. By paying a monthly premium over a specified term, the policy will pay out a lump sum if the unexpected happens.

Types of Mortgage Protection Policies

There are different types of mortgage protection policies available, including reducing term cover and joint life first death cover. Reducing term cover decreases over the term of your mortgage in line with the capital outstanding. Joint life first death cover means the mortgage is paid off on the death of the first person to die if a couple is involved.

Bank vs. Broker: Mortgage Protection Options

When you draw down a mortgage from a bank, the lender will insist you take out your mortgage protection from their group scheme. This means you use the bank’s insurance provider. However, when a broker arranges your mortgage, they have access to multiple mortgage lenders and insurance providers. This ensures you have more options in finding you the best deal.

What Happens to Your Policy If You Decide to Change Your Mortgage?

If you decide to switch your mortgage to a different lender, you will have to assign your mortgage protection to your new lender. As well, If either the amount you borrow or the term of your mortgage changes, you may need to increase your mortgage protection cover to stay fully protected. If your current mortgage protection policy is through a bank’s group scheme, the bank will cancel your cover once you switch to a new lender. Before switching, make sure you can get mortgage protection cover elsewhere.

If you are in a position to pay off your mortgage early, you generally have two options. You can cancel the mortgage protection cover and pay no more, or you may choose to keep the mortgage protection policy and continue to pay for the additional benefits you opted for, such as life insurance or a level term cover with or without serious illness cover.

Additional Protection Products to Consider

Lenders will insist you have a mortgage protection policy in place before drawing down your mortgage. However, we cannot predict what life has in store, and therefore, it’s important to consider additional protection products from the outset. Serious illness benefit can be an optional add-on to a mortgage protection policy. This means your mortgage will be cleared and your home secured not only if you die, but if you are diagnosed, or recover from a serious illness specified in your policy. Another optional protection policy is income protection, which is insurance cover that provides you with a replacement income should an accident or sickness keep you out of work for an extended period of time. If affordable, it’s worth considering these options the younger you are, as premiums become more costly as you get older.

Mortgage and Life Broker Options

At Ezfees Financial, we understand that getting a mortgage and protecting your home can be a complicated and overwhelming process. That’s why we are here to help. After securing your mortgage, we then compare a number of mortgage protection policies from an optional number of insurers to make sure you get the most suitable protection policy for your needs and the best possible deal. Our expert advisors will talk you through and explain the difference in the various and additional protection products available and advise on the best option for you and your family’s needs.

So, why not give us a call on 0818 910800 or email your query to info@ezfeesfinancial.ie to speak to one of our experts and get the guidance and peace of mind you need to protect yourself and your loved ones.

Business Owner Consultation

Your business is your baby, so it deserves protection. Our team of experts will guide you through informed decisions to provide tailored policies. Shield your business against unexpected setbacks and ensure stability, whether you’re a startup or an established corporation. We’ll create a financial plan that will guide the balance of your personal finances and your long-term business goals.

What’s in this for you? Discuss your business finances in confidence with trustworthy advisors to:
1) Create a money management plan to suit your business
2) Align your business and personal objectives
3) Get clarity and validation on your strategies from dedicated Financial Advisors committed to safeguarding your business finances
4) Be advised when you need to speak to Tax Advisors where relevant
5) Obtain guidance onto Owner/Director on Pension planning and legislation
6) Referral to a Life/Business Coach where relevant

Plan for your business’s long-term financial goals:
1. Share your goals with us
2. Create a plan!
3. Gather and submit your information
4. Safeguard your business and your future

Investment Consultation

With low deposit rates and high inflation rates, savings and investment plans are appealing right now. We understand what it’s like to make sacrifices to accelerate your savings goals so you can achieve your dreams. That’s why we provide expert guidance so you can take charge of your future without sacrificing your valuable time.

What’s in this for you? Why you should consider savings and investment plans?
1) The potential for higher returns
2) Flexibility in the amount you save
3) Short, medium and long term options to suit your goals, amounts and terms to save
4) Investment options appropriate to suit your needs and goals

How you can save to secure your dreams:
1. Share your goals with us
2. Create a plan!
3. Gather and submit your information
4. Make your Dreams a reality

Mortgage Consultation

Whether you are a first-time buyer, mover, switcher or looking to invest in a rental property, we have a mortgage solution to fit your unique situation. Over 60 and looking to release equity in your home to support your children, go on that dream holiday or pay off bills? We find the mortgage most suitable for you and your family’s needs and support you through the entire process. You’re guaranteed to find the best mortgage option for your financial needs and goals, with impartial advice and competitive rates.

Clear, simple, actionable advice for all your mortgage needs:
1) First time buyers
2) First Home Scheme/ Local Affordable Authority Scheme
3) Switchers
4) Home Movers
5) Investment Property
6) Self Employed
7) Contract Workers
8) PAYE
9) Lifetime Loan (over 60’s equity release)

How you can get started:
1. Share your journey with us
2. Create a plan!
3. Gather and submit your information
4. Make your Dreams a reality

Financial Planning Consultation

Secure your future and that of your loved ones beyond homeownership with life assurance, income protection and pension advice. Whatever your stage of life or money situation, our team of experts will help you make informed decisions to safeguard your financial future.

What’s in this for you? Planning your future, helps make your dreams a reality:
1) Start by creating a money management plan
2) Work with our dedicated Financial Advisors committed to safeguarding your future
3) Helping you get the guidance you need to achieve your long-term financial goals

Safeguard your financial future today:
1. Share your goals with us
2. Create a plan!
3. Gather and submit your information
4. Safeguard your Financial Future