Mortgage Protection
Are you in the process of buying a house, thinking of buying a house in the near future or currently repaying the mortgage on your house?
Mortgage Protection may be a requirement by your lender when taking out a mortgage.
It is also a very useful protection for your family, should you die before you repay the loan.
Mortgage Protection - (also known as decreasing term assurance), has a sum assured which reduces each year (or possibly each month) by a stated amount, decreasing to nil at the end of the term.
It is normally used to cover a reducing debt, such as the capital outstanding on a house purchase mortgage, with the sum assured being linked to the reduction in the capital outstanding under the loan.
Although the cover decreases each year, the premium remains constant.
Premiums are sometimes payable for a shorter period than the policy term itself, because otherwise there would be a temptation for the assured to lapse the policy in the last year or two, when the sum assured has reduced to a comparatively low level.
Premiums for Mortgage Protection are either slightly cheaper than for level term assurance for the same initial sum assured and term – or the same, but payable for a shorter period.
Mortgage Protection is the cheapest form of Life Assurance available.
The reason for this is that
it decreases in line with your mortgage repayments every year.
If you have a mortgage on your property this type of insurance is vital.
The cover will be paid directly to the lender who will use the funds to pay off the outstanding balance of the mortgage.
In this way the borrower’s dependants will then own the residence in full, without any outstanding mortgage.
It is also possible to add accelerated serious illness cover to your mortgage protection so that you are covered in the event of premature death and also being diagnosed with a serious illness: whichever event comes first.
Mortgage Protection cover is only suitable if you have a Capital and Repayment mortgage.
It is not suitable for an Interest only facility.
mypremium.ie can help you choose from a range of providers to find the cheapest and most suitable protection available and suitable for your needs.
How can I be sure that I am paying the best mortgage protection rates on the market?
By using our free comparison service.
We compare the top providers in Ireland to find you the best deal for your circumstances.
We also have a dedicated switching team, to make the move easier, when you decide to move to a better rate.
Think of how much you save over the course of the mortgage.
Contact us today on 047 62500
or use the quote button
