Mortgage Protection

Buying a house is one of the most exciting things you can do; there’s no feeling quite like officially being handed the keys to your house and taking that first step over the threshold.

Most people know that in Ireland it is mandatory to take out mortgage protection insurance to pay off your mortgage if you die. What you might not know is that you don't have to take out mortgage protection from your bank. Read below to find out how we can help you make the right decision on your mortgage protection.

Click on the following quick link to find out more about mortgage protection if you are cohabiting, and how to reduce inheritance tax liabilities.

Why Choose Inverdea?

  • We have access to 5 different insurer's which means you will always get the best price

  • Our team of expert advisors can give you the best advice to suit your personal circumstances.

  • If you have medical issues, from our years of experience we know which insurer's offer the best price for a range of different medical problems such as diabetes, BMI, mental health, etc.

  • If you are cohabiting, we will ensure that the policy is set up in the most suitable way for you, reducing or eliminating inheritance tax liabilities if you make a claim

What are the factors to consider when choosing mortgage protection?

It is a common misperception that getting mortgage protection just comes down to the prices offered by the insurers.

 

There are actually a lot more useful benefits that you can get included with your mortgage protection cover, often without any increase in the price! 

The benefits to consider are:

  • Price.

  • Conversion option.

  • If the insurer offers Dual Cover

  • Would you be more suited to a life of another policy if you are cohabiting?

  • The extra cover benefits:

    • Guaranteed Insurability.

    • Medical 2nd Opinion.

    • Accidental Death Benefit.

    • Waiver of Premium.

    • Child Cover.

Don't worry if you don't know what all of these benefits mean, that's what we are here for. We will explain every feature of your policy, and help you decide which one best suits your needs. 

Dual Life vs Joint Life Cover

Most people have either single or joint cover. Single is suitable if you’re buying on your own. A joint or dual policy is for you and your partner.

 

With a joint policy, there’s a pay-out to the bank on the first death only. Dual life cover can pay-out twice if both of you die during the term of your policy. Once to the bank and the second time to your partner’s estate. 

Here's an example of Dual Life cover to help you understand how it works:

 

Jack and Emma have a house together and 2 children. They have dual life mortgage protection. Jack dies first, and the policy clears the mortgage. If Emma dies during the term of the policy there’s a second pay-out to the kids.

The great thing about dual life mortgage protection is that it’s the same price as joint life mortgage protection, yet you get twice as much cover.

Dual life mortgage protection is not available from your bank.

Conversion Option

A conversion option allows you to add more years to your cover without having to answer medical questions.

So what this essentially lets you do is to turn your Mortgage Protection policy into Life Insurance once you’ve paid off your mortgage, without answering any medical questions. It can also be beneficial if you change your mortgage later in life and apply for an equity release mortgage. You can add more years to your existing cover without any further medical questions. Some insurers also offer a 50% increase in the original sum assured which can be particularly useful for some people.

 

Here is an example to show how the conversion option works:

Jack is 27 when he gets a 30-year mortgage & Mortgage Protection. Jack clears the mortgage in 20 years, but unfortunately, he has developed Diabetes. He uses his conversion option to buy 20 more years of Life Insurance cover based on his perfect health at age 28. If he didn’t have the conversion option, Jack would have had to disclose diabetes and would have ended up being charged higher premiums based on his current health. 

 

With this, you can get coverage regardless of your health. Usually a conversion option costs around 5% more, but for some people it is worthwhile

Get in touch to find out more!

Call the office on 0404 67123 to find out more, or click here to fill out our contact form and a member of staff will get in touch with you!

Inverdea Financial Services Ltd.


Tel:  +353 (0)404 67123

 

Email: info@inverdea.ie


Address 

Inverdea Financial Services,

Inverdea House,

2 Bridge Street,

Wicklow Town,

Co. Wicklow, Ireland

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Inverdea Financial Services Ltd is regulated by the Central Bank of Ireland