Mortgage Protection Insurance FAQs

Finding the right mortgage protection cover can be confusing and often daunting. With the help of the friendly team at Hello.ie we can find the most competitive insurance quotes in the market that best suit you. To make the process easy, we have listed some of the most commonly asked questions regarding mortgage protection insurance.

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What is Mortgage Protection Insurance?

Mortgage protection cover pays off your mortgage should you pass away before it is paid off. There are mortgage protection plans that can also pay your monthly mortgage payments instead of just one lump sum, in some cases you can be covered for up to 2 years. If you already have mortgage protection, it is likely that you are paying more than you should for this policy, in fact, Hello.ie can bring you real savings if you choose to switch. To see how much you can save why not call one of our helpful mortgage protection advisors now?

What does mortgage protection insurance cover?

Although there are a variety of policies available, mortgage protection insurance protects your mortgage only in the event of death. It is similar to life insurance but differs due to the sum that is insured reduces over the term of the policy to track your reducing outstanding mortgage sum. If you die and your mortgage has yet to be paid off, your mortgage protection insurance will pay out a lump sum in order to pay off the remaining amount.

What does mortgage protection insurance not cover?

When taking out a mortgage protection policy, it is important that you are aware of exclusions. Mortgage protection insurance only covers you in the event of death. Often people assume it will cover you for the likes of illness or redundancy and this may lead to difficult financial situations should the event of job loss or illness arise. Some employers offer protection policies for employees but it is important that if you are not covered through your work that you consider taking out a separate income protection policy and critical illness cover. Be mindful when seeking critical illness cover that it may be difficult to be accepted for a policy if you have a pre-existing or chronic medical condition. Many plans do not cover back conditions or mental health illnesses as well as any self-inflicted injuries.

Am I required to take out mortgage protection insurance?

When taking out a mortgage, it is the lender’s legal duty to ensure you take out mortgage protection insurance cover before the mortgage itself is granted. There are several situations where you may be exempt from purchasing mortgage protection, such as; if you are over 50 years old, you are buying an investment property, you already have an existing life insurance policy. An existing life insurance policy can be used as long as it is not already covering another property and the coverage is enough to cover the mortgage.

Why do I need mortgage protection insurance?

It is vital that you have mortgage protection cover to ensure you are protected in the instance of death. Mortgage protection will give you the self-assurance that you and your partner will be covered in the event that either of you die. If your mortgage is in both spouse’s names, it is important that your mortgage insurance plan is also in both names. In the event that you die, your mortgage will be paid off even with your surviving spouse still living in the property. In the case that your mortgage is paid off with money left over, the remaining amount will be transferred to your estate. Mortgage protection insurance is important in the sense that you and your loved ones will be looked after financially in the event of death. This is not only an imperative aspect when purchasing a property but also gives you piece of mind for yourself and your family.

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