Mortgage Protection

Looking to get mortgage protection right now too and finding it fairly confusing

this link has a good bit of info
https://lion.ie/specified-illness-cover/critical-illness-insurance-cover/

good point made on it - don't go with the banks agent as the banks will get the money and not you (in the event...)

+1 for the lion website in terms of breaking down the jargon

We got a specified illness benefit of 50%, we didn't mind paying extra each month for the peace of mind that if one of us is diagnosed with one of the covered illnesses that half the house would be paid off. With some policies, a death has to occur before they'll pay up - which hopefully will not happen but its all personal preference about how much extra you would like to pay for something that may or may not happen.

One thing to note, the banks will throw their toys out of the pram in if you go with another provider. We had to get a different branch of AIB to witness the assignment form (as we were in a different county at the time) and the mortgage advisor there claimed she didn't know how to fill in the AIB form. Our own AIB mortgage advisor had to call us to tell us that it ended up being filled in incorrectly and had to be redone but she was helpful in the end. Lost a few days coming up to drawdown because of it.

When I took out mortgage it was mandatory, it was never explained that this insurance was available elsewhere, being young and dumb I took out mortgage cover and specified illness, it wasn't until many years later that I understood that even if I had of become ill, the illness benefit would have been paid out to the bank rather than myself (probably offset against the remaining balance). When I found out this I cancelled the illness part and took out a separate policy.

I now maintain a policy just to clear the mortgage if I die and another for serious illness and life cover for my wife and I.

Zurich apparently have the best serious illness cover in terms of conditions covered...

Its one of these things I really wouldn't like to ever claim on tbh.

woodchuck wrote: »

Yeah we actually heard that having mortgage protection with your bank can cause issues down the line if/when you want to switch mortgage provider. We didn't find anything concrete on this though if anyone has any further information? We're getting cheaper quotes from other crowds that aren't associated with our bank anyway though, so it just makes sense that we get it elsewhere.

Just to note on the serious illness protection, my (very limited) understanding is that it just pays out in advance of your death. All of the illnesses they list are so serious, that you'd expect to be terminal. So they just pay off the mortgage early if you get me? I.e. they'll pay it out when you're diagnosed as opposed to waiting until you actually die. Obviously that's useful if you're out of work for a chunk of time before your death, but it's no good for other illnesses that won't kill you, but mean you're unable to work long-term. What you really want to look into there is bill cover or income protection. [again, all based on my very limited understanding from the recent research we've done and advice sought and I am very much open to correction!]

I know someone that was diagnosed with MS and they were rejected as ten years previously they were in hospital for an unrelated issue but as the symptoms were similar so it was considered a pre existing condition. I heard this kind of thing before for these policies.

Having read up, I'm still no closer to choosing what I need?


House Building Insurance - Sorted
Mortgage insurance/Level term cover/mortgage protction?
Income protection?
Serious illnes cover?
Funeral & Bill cover??

Most of the above is with Alliaz one protection plan costing me arround 90e a month. Surely not all are needed.

ebayissues wrote: »

Having read up, I'm still no closer to choosing what I need?


House Building Insurance - Sorted
Mortgage insurance/Level term cover/mortgage protction?
Income protection?
Serious illnes cover?
Funeral & Bill cover??

Most of the above is with Alliaz one protection plan costing me arround 90e a month. Surely not all are needed.

In terms of buying s house and getting a mortgage, the two required insurances are:

(1) House insurance
(2) Mortgage protection policy - this is a life insurance policy assigned to the bank lender that repays the debt if you die


I paid 100 pa for my first MPP, single life, 20yr term.

Get a quick quote on www.labrokers.ie

Geuze wrote: »

House insurance consists of:

building + contents + options like specific item (e.g. jewels)


It is possible to buy contents only, a tenant would buy that.

I know that
But I was asking did the OP get building insurance ,or did he get buildings and contents
I have heard of people not getting contents insurance because the banks did not insist on it

Lion.ie are definitely the folk to speak to if you've had a recent diagnosis, my sister recently got shot down by a few places following an MS diagnosis and Nick from Lion had her covered within a day or two of filling in the form on his site, unbelievable service from a sound Irish broker who more people should really know about I feel (no affiliation, just a grateful admirer)

into_the_wild wrote: »

Just wondering, Can one switch their mortgage protection policy every year for free or are there any fees/charges in doing so?

For what reason? Generally mortgage protection policies get more expensive the older you get.

into_the_wild wrote: »

Just wondering, Can one switch their mortgage protection policy every year for free or are there any fees/charges in doing so?

Yes, you can.

To do so very often would involve a lot of hassle.

With a mortgage you only have to take out basic mortgage protection, you can take it with reducing cover as in the value of it reduces in line with the mortgage, you owe 100k, policy cover 100k.
People saying the cash goes to the bank annoys them have completely missed the point of why they are taking it out... it’s to pay back the mortgage in case you or your partner die so of course it gets paid to the bank - that’s the whole point of it .
You can set cover as in 250k life cover, mortgage is 100k and if you die your estate gets the balance if 150k after the bank gets there 100k - this is obviously slightly more expensive that reducing cover.

Taking out critical illness is entirely optional, are you paid when your out sick from work? Do you have savings that you won’t need/emergency money stashed somewhere. You need to understand your own finances and if you would have funds/means to live should you get cancer or a serious illness.

Going with a broker over a bank is much of a much mess, assuming your in good health with a good family history of health, basic mortgage protection is very cheap. One benefit of going with a bank I found is that the policy didn’t kick in until drawdown (life company & bank communication/work together) where as if going with a broker you have to have the policy in place before drawdown - grand if it’s straight forward but a pain in there are any delays.

As with all insurance you can insure yourself until the cows come home, in reality all you need is basis cover, if you have family, kids etc etc you should really look at your over all picture and try make sure your family are catered for should you die.

The consumer credit act states that if insurance is prohibitively expensive because of ill health or age, the condition can be waived... most banks won’t agree to this, especially if a person is the main earner in a household, you can try make a case, but if they feel it’s too risky they don’t have to agree to it, all banks would have there own policy on waiving life cover.. and it’s a slim policy for not having it.

With home insurance you don’t need contents cover, again you should have it... all grand until the tv falls over when your have a dance off with your friends on a Saturday night.

Boggles me that people are so anti insurance, a quick google search shows 98% of all life assurance policies in ireland are paid out on.. nonsense above about looking for a reason not to pay 🙄

Most companies will pay out, don’t lie on your application, if you smoke, it will cost you twice as much, but lie about it and you won’t get your pay out.

Johnkl98,

I contacted Nick at Lion insurance brokers off the back of recommendations in this thread and he was absolutely fantastic. I have recent diagnosis of lupus and was being turned down left right and centre, he managed to get me covered with one of the places who originally turned me down. He seems to really know his stuff in terms of illnesses and must be able to present a case well. He was also unbelievably efficient and professional. I'd definitely give him a shout.

Thank you also to everyone for recommending, I literally went from losing house of my dreams to signing contracts this week. Thank you!