Life Insurance is a valuable safety net to have to ensure that your family and loved ones are taken care of, as well as a guarantee against large debt obligations.
Life Insurance itself is not complicated, you pay your monthly premium, the same as any other insurance policy, and when you die the policy pays out a lump sum to your beneficiaries.
One of the biggest debts that most people will take on in their lives is a mortgage for their home, and always requires some manner of life coverage.
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What is Life Insurance?
Life Insurance is any insurance policy that pays out a lump sum in the event of your death, or in the case of illness and injury in certain policies.
It’s really not that different from any other type of insurance. You are insuring a highly valuable asset, in this case, yourself. You pay your premiums.
Who offers Life Insurance for Homeowners?
What insurance companies in Ireland can I go to in order to get life insurance?
Comparing Life Insurance
There are many different factors that should be considered when comparing life insurance policies and quotes, including personal factors that will affect the cost of your policy.
Before buying, consider exactly what sort of life insurance policy you want. Is it going to cover your whole life, or are you seeking a fixed length term? Will your policy be for a single person, or are you looking for Dual Life Cover that will pay out on multiple individuals.
Even more basic than that is how much cover do you want? How large of a lump sum you’ll be insuring your life for, certain health conditions, and how old you are when you first take out the policy, will have a significant impact on your monthly premiums.
What does Life Insurance cover?
Life insurance can offer more coverage than just a payout to your beneficiary in the event of your death, and many insurers offer multiple types of coverage under this umbrella.
Do I need life insurance to take out a Mortgage?
You are required to have some manner of life protection insurance to take out a mortgage in Ireland, but it does not actually have to be life insurance.
If you already have life insurance that can be used to cover your mortgage, as long as it is large enough, and isn’t already promised to another debt.
Often prospective homeowners will get a specialised form of life insurance policy, mortgage protection insurance, which is specifically designed for this.
Why do I need Life Insurance to take out a Mortgage
All banks will require borrowers to have either life insurance or mortgage protection insurance before lending them money for a home, in case you die before paying back the full mortgage.
Life is uncertain, and while you might live to a ripe old age, with your mortgage paid off, you could also die with a large balance still to be repaid.
Banks and other lenders want a guarantee that the full balance of the mortgage will be repaid in the event of a borrower’s death. Hence, asking for life insurance or mortgage protection insurance.
Why do I need Life Insurance to take out a Mortgage
All banks will require borrowers to have either life insurance or mortgage protection insurance before lending them money for a home, in case you die before paying back the full mortgage.
Life is uncertain, and while you might live to a ripe old age, with your mortgage paid off, you could also die with a large balance still to be repaid.
Banks and other lenders want a guarantee that the full balance of the mortgage will be repaid in the event of a borrower’s death. Hence, asking for life insurance or mortgage protection insurance.
What if I already have a life insurance policy when taking out a mortgage?
If you already have life insurance when taking out a mortgage, this can be used as mortgage protection insurance.
However, there are stipulations on this. Your life insurance policy must be large enough to cover the mortgage in its entirety.
If your life insurance is only meant to provide a bit of extra assistance to your family in the event of your death, it might not be enough to cover a large mortgage.
Secondly, your life insurance must not already be assigned to cover for another loan or mortgage debt.
Our Process
We make the life insurance process as simple and streamlined as possible, and that’s one of the reasons we’re maintain a 5★ rating from our customers!
Assessment
The first step is to take a few moments and fill out our interactive life insurance assessment form.
Review
Your assessment is sent directly to a life insurance expert. They will review your data, get your quotes and schedule a call with you to discuss your options.
Quotes
Your life insurance advisor will talk you through the pros and cons of each policy. Once you have decided which policy you would, your advisor will submit your application on your behalf.
What is the difference between mortgage protection and life insurance?
Life Insurance and Mortgage Protection Insurance, also known as a reducing term life insurance policy, have many similarities, but there are also some glaring differences.
Both policies pay out in the event of your death, but not necessarily the same amount, or automatically going to the same use.
Life Insurance pays out a lump sum in the event of your death, going to the person you have chosen as its beneficiary.
You pick the sum you want to be insured for when you first take out the policy, and this doesn’t change no matter the length of time before it is paid.
Mortgage Protection Insurance is often called ‘decreasing term’ life insurance, as the amount which the policy pays out decreases over time.
When taking out mortgage protection you choose the payout goes directly to the bank to clear only the remaining mortgage balance.
If you have a €300,000 mortgage over 30, you will need a policy to cover that amount for that fixed length. But if 15 years later you have half the mortgage paid off, only €150,000 would be paid out in the event of your death.
This gradually reducing payout means that Mortgage Protection Insurance is usually cheaper than Life Insurance.
You do not need to have both Life Insurance and Mortgage Protection Insurance if taking out a mortgage. But it can be beneficial to have both. If you only have life insurance, paying off the mortgage may eat up all or most of the lump sum, leaving little left over for your family.
Who else is required to have a life insurance policy?
There are other circumstances where some really ought to have life insurance, not just mortgages.
Speaking generally, anyone with significant debt, loans or business obligations should have life insurance to avoid leaving others holding the bad in the event of their death.
Who isn’t required to have life insurance, but should?
There are plenty of people who aren’t necessarily obliged to have life insurance, but they probably should, for a variety of personal and professional reasons.
Anyone with a large family, multiple children or other dependents who are reliant on them should seriously consider getting life insurance to make certain that they are looked after in the event of an untimely demise.
Life insurance with a specific term length can be a very useful thing for parents who want to have a safety net for their children until they are adults.
Learn more about Life Insurance today
There’s a lot more that goes into choosing the best life insurance options for you. What age you take out life insurance can drastically change the cost. Whether you want a permanent or fixed term policy. What level of tax will apply to any eventual payout depending on who the beneficiary is.
If you’re getting mortgage protection insurance, there are policy differences in whether you are applying as a single person, or as a couple.
And of course, as with any other insurance, it is important to shop around and compare life insurance quotes from different providers.
