Mortgage Protection Insurance Ireland

Protect your home and the people who live in it

Mortgage protection insurance is designed to repay the outstanding balance on a mortgage if an insured borrower dies during the policy term and the claim is valid.

For most people buying a home in Ireland, mortgage protection will be required before the mortgage funds are released.

At Dooley Insurance Group, we provide mortgage protection advice for first time buyers, home movers, couples, self employed applicants and existing mortgage holders across Ireland.

We compare the mortgage protection options available through our agency appointments and help you understand the cover, cost, medical requirements and policy conditions before you proceed.

Get a Mortgage Protection Quote

What is mortgage protection insurance?

Mortgage protection is a type of decreasing life insurance linked to a mortgage.

The amount of cover generally reduces over the policy term as the mortgage balance is expected to reduce.

If an insured person dies during the policy term and the claim meets the policy conditions, the benefit is normally used to repay the outstanding mortgage.

The purpose of mortgage protection is to help prevent a surviving borrower or family from being left with a mortgage they may be unable to repay.

Is mortgage protection compulsory in Ireland?

A mortgage lender will generally require mortgage protection before providing a mortgage for a principal private residence.

Certain exemptions may apply, including circumstances involving age, health, an inability to obtain cover or a mortgage that is not secured on a principal private residence.

An exemption is not automatic and must be accepted by the lender.

Even where a lender does not require mortgage protection, arranging suitable life cover may still be worth considering if another person would be financially affected by your death.

How does mortgage protection work?

When arranging mortgage protection, the policy is usually based on:

• The mortgage amount
• The mortgage term
• Number of borrowers
• Interest rate assumptions
• Age
• Health
• Smoking status
• Occupation
• Additional benefits selected

The level of cover is designed to reduce broadly in line with a repayment mortgage.

If a valid claim occurs, the insurer pays the benefit according to the policy terms. Where the policy has been assigned to the lender, the lender will normally use the payment to reduce or clear the outstanding mortgage.

Any remaining payment will be handled according to the policy ownership, assignment and applicable legal arrangements.

When should I arrange mortgage protection?

Mortgage protection should be considered as early as possible during the mortgage application.

You do not need to wait until the mortgage is ready to draw down.

Starting early gives more time to:

• Compare insurers
• Complete medical underwriting
• Request medical reports
• Address any application issues
• Review policy terms
• Arrange the correct level of cover
• Complete the lender’s assignment requirements

Leaving mortgage protection until the final days before closing can create unnecessary delays, particularly where medical information is required.

An approval in principle from a lender does not guarantee that an insurer will automatically provide mortgage protection.

Mortgage protection for first time buyers

First time buyers often focus on the mortgage rate, deposit, valuation and legal work. Mortgage protection can be left until late in the process.

The cost and application process will depend on:

• Age of each applicant
• Mortgage amount
• Mortgage term
• Health and medical history
• Smoking or nicotine use
• Occupation
• Lifestyle
• Additional cover required

We can compare the available options and help you arrange a policy that meets the lender’s requirements.

We will also explain whether basic mortgage protection is sufficient or whether additional family life cover or specified illness cover should be considered separately.

Joint mortgage protection

Where two people are named on a mortgage, the lender will generally require both borrowers to be covered.

A joint mortgage protection policy normally pays once following the first insured death during the policy term. The benefit is used to repay the mortgage and the policy then ends.

Once the mortgage has been cleared, the surviving borrower no longer needs mortgage protection for that loan. However, they may still have a separate need for family life insurance.

Dual life mortgage protection

A dual life policy can provide separate cover for two insured people.

If one person dies and a valid claim is paid, cover may continue for the surviving insured person, subject to the policy terms.

Dual life cover can provide broader protection than a standard joint life policy, but it may cost more.

The suitability of joint or dual life cover will depend on your mortgage, family circumstances, budget and wider protection needs.

Mortgage protection and life insurance

Mortgage protection and life insurance both provide a benefit following death, but they serve different purposes.

Mortgage protection is designed to repay a mortgage. The level of cover normally reduces over time.

Level term life insurance is designed to provide a fixed lump sum to a family, dependant or other beneficiary. The cover generally remains at the same level throughout the term.

A mortgage protection policy may clear the home loan but provide no additional money to replace income, cover household expenses or support children.

Many families need to consider both:

• Mortgage protection to repay the home loan
• Life insurance to protect the family’s wider financial position

The appropriate combination depends on your income, dependants, debts, savings and existing cover.

Level term cover for a mortgage

Some borrowers may choose level term life insurance instead of standard decreasing mortgage protection, subject to lender approval and policy suitability.

With level term cover, the insured amount remains fixed while the mortgage balance reduces.

If a valid claim occurs, the policy benefit could be greater than the outstanding mortgage. The lender would generally receive the amount required to clear the mortgage, with any remaining proceeds handled according to the policy ownership and assignment.

Level cover will normally cost more than decreasing cover.

Mortgage protection with specified illness cover

Specified illness cover may be added to a mortgage protection policy or arranged separately.

It can provide a lump sum if an insured person is diagnosed with an illness listed in the policy and meets the insurer’s medical definition.

The payment could be used to reduce the mortgage or manage other financial commitments during treatment and recovery.

Specified illness cover does not cover every medical condition.

The policy wording, definitions, exclusions and effect of a claim on the remaining life cover should be understood before the policy is arranged.

Mortgage protection with an existing medical condition

Having an existing medical condition does not automatically prevent you from obtaining mortgage protection.

The insurer will assess:

• The medical condition
• Diagnosis
• Treatment
• Medication
• Current symptoms
• Previous hospital treatment
• Test results
• Recovery
• Family medical history
• Other health information

Following medical underwriting, the insurer may:

• Offer cover at the standard premium
• Offer cover at a higher premium
• Apply specific terms where permitted
• Request further medical information
• Postpone a decision
• Decline the application

Different insurers may assess the same medical history differently.

Speaking to a broker before submitting several applications can help identify an insurer whose underwriting approach may be more appropriate.

Mortgage protection after cancer or serious illness

It may be possible to obtain mortgage protection following cancer, heart disease or another serious medical condition.

The outcome will depend on factors such as:

• Type of condition
• Date of diagnosis
• Stage or severity
• Treatment received
• Time since treatment
• Current health
• Follow up results
• Insurer underwriting criteria

Some applications may be accepted immediately, while others may be offered at a higher premium, postponed or declined.

Where cover cannot be obtained, you can discuss the position with your lender. The lender will decide whether an exemption can be considered.

Mortgage protection for smokers

Smoking and nicotine use will generally increase the cost of mortgage protection.

Insurers may include the use of the following when deciding whether someone is a smoker:

• Cigarettes
• Cigars
• Vaping products
• Nicotine pouches
• Nicotine replacement products
• Other nicotine products

To qualify for non smoker rates, an insurer will normally require you to have stopped using nicotine for a specified period.

The definition and required period can vary between insurers.

Mortgage protection for self employed applicants

Mortgage protection is available to self employed mortgage applicants, subject to medical and financial underwriting.

The mortgage lender may require additional financial documentation during the loan application, but the mortgage protection insurer will generally focus on:

• Mortgage amount
• Policy term
• Age
• Health
• Smoking status
• Occupation
• Lifestyle
• Additional benefits

Self employed people should also consider whether clearing the mortgage would provide enough protection for their family.

Without employer death in service benefits, separate life insurance and income protection may be particularly important.

Mortgage protection for older borrowers

Age can affect the cost, maximum term and availability of mortgage protection.

An older borrower may face:

• Higher premiums
• A shorter available policy term
• Additional medical questions
• Medical examinations
• Restrictions on certain benefits
• Fewer insurer options

Where standard mortgage protection is unavailable, other life insurance arrangements or a lender exemption may need to be considered.

Can I switch mortgage protection provider?

You are not normally required to keep the same mortgage protection provider for the full mortgage term.

You may be able to replace an existing policy with another suitable policy, subject to medical underwriting and lender requirements.

Reasons for reviewing mortgage protection include:

• Lower premiums may be available
• You have stopped smoking
• Your health has improved
• You changed mortgage provider
• You reduced the mortgage term
• You paid a lump sum off the mortgage
• You require additional cover
• Your family circumstances changed

Do not cancel an existing policy until the replacement cover has been fully accepted, placed in force and assigned to the lender where required.

A new application will be assessed using your current age and health.

Mortgage protection after switching mortgage lender

If you switch mortgage provider, your existing mortgage protection policy may be capable of being reassigned to the new lender.

However, the policy amount, remaining term and conditions must satisfy the new lender.

You may need to:

• Reassign the existing policy
• Increase the level of cover
• Extend the policy term
• Arrange replacement cover
• Provide policy documentation
• Complete a new deed of assignment

The existing policy should be reviewed before the mortgage switch is completed.

Mortgage protection after paying a lump sum

If you make a substantial lump sum repayment, the outstanding mortgage may become lower than the level of cover provided by the policy.

This does not necessarily mean that the policy should be cancelled or reduced.

Before making changes, consider:

• Remaining mortgage balance
• Remaining policy term
• Cost of the cover
• Current health
• Whether replacement cover would be available
• Wider family protection needs
• Lender requirements

An existing policy may have become more valuable if your age or health has changed since it was arranged.

Overpaying for mortgage protection

The mortgage protection policy offered through a lender is not necessarily the only option available.

Premiums and policy features can vary between insurers.

A mortgage protection review can compare:

• Current premium
• Remaining mortgage balance
• Remaining mortgage term
• Existing benefits
• Joint or dual life structure
• Specified illness cover
• Current health
• Smoking status
• Alternative insurer terms

A lower premium may be available, but cost should not be considered without comparing the benefits and policy conditions.

Assigning mortgage protection to a lender

A lender will normally require the mortgage protection policy to be assigned to them.

Assignment gives the lender the right to receive the policy benefit required to repay the outstanding mortgage following a valid claim.

The insurer or broker will provide the relevant assignment documentation. The lender must confirm that the policy and assignment meet its requirements before the mortgage is drawn down.

Making a mortgage protection claim

Following the death of an insured person, the insurer should be notified as soon as reasonably possible.

The insurer may request:

• A completed claim form
• Death certificate
• Medical information
• Policy documents
• Mortgage details
• Assignment information
• Identification documents
• Other supporting information

If the claim is accepted and the policy is assigned, the insurer will normally pay the lender the amount due under the policy.

Dooleys can help existing clients understand the claims process and the information required.

Our mortgage protection process

Understanding your mortgage

We confirm the mortgage amount, term, borrowers and lender requirements.

Reviewing your circumstances

We discuss your age, health, smoking status, occupation and additional protection needs.

Comparing available policies

We review suitable mortgage protection options available through our agency appointments.

Completing the application

We help you complete the application and respond to medical or underwriting requests.

Arranging the policy

Once accepted, we help place the policy in force and provide the documentation required by your lender.

Reviewing your cover

Mortgage protection should be reviewed when you switch lender, change the mortgage or experience a significant change in your circumstances.

Why choose Dooley Insurance Group?

Dooley Insurance Group has supported homeowners, families and Irish businesses since 1957.

Our financial services team provides advice across mortgage protection, life insurance, specified illness cover, income protection and financial planning.

We compare the mortgage protection options available through our agency appointments and explain the cost, benefits and conditions before you proceed.

Our financial services team includes Conor Swan, QFA, RPA and SIA, Director, and David Renwick, Senior Financial Consultant.

With offices in Naas, County Kildare and Edenderry, County Offaly, we provide mortgage protection advice to clients locally and throughout Ireland.

Mortgage protection questions

What is mortgage protection insurance?

Mortgage protection is a decreasing life insurance policy designed to repay an outstanding mortgage if an insured borrower dies during the policy term and the claim is valid.

Do I legally need mortgage protection in Ireland?

A mortgage lender will generally require mortgage protection for a principal private residence. Certain exemptions may apply, but these must be accepted by the lender.

When should I apply for mortgage protection?

You should apply as early as possible during the mortgage process, particularly if you have an existing medical condition or complex medical history.

Can I get mortgage protection with a medical condition?

It may be possible. The insurer will assess the condition, treatment, current health and other medical information before making a decision.

What happens if I cannot get mortgage protection?

You can discuss the situation with your mortgage lender. The lender may consider an exemption, but it is not required to approve one in every case.

Is mortgage protection the same as life insurance?

No. Mortgage protection generally reduces with the mortgage balance, while level term life insurance usually provides a fixed benefit for the policy term.

Can I switch mortgage protection provider?

Yes, subject to medical underwriting and lender requirements. Existing cover should not be cancelled until the new policy is fully active and accepted by the lender.

Does mortgage protection cover illness?

Standard mortgage protection pays following death. Specified illness cover may be added or arranged separately for listed medical conditions.

Does mortgage protection pay off the full mortgage?

The policy is designed to cover the outstanding mortgage, but the actual payment will depend on the insured benefit, mortgage balance, interest rate and policy conditions.

Can I use an existing life insurance policy?

A lender may accept an existing life insurance policy if the amount, term and conditions are suitable and the policy can be assigned to the lender.

What is dual life mortgage protection?

Dual life cover may provide separate benefits for two insured people, allowing cover to continue for the survivor after the first valid death claim.

Can self employed people get mortgage protection?

Yes. Self employed applicants can obtain mortgage protection subject to the insurer’s medical and financial underwriting requirements.

Is mortgage protection cheaper through a broker?

A broker can compare the insurers available through their agency appointments. The most competitive option will depend on age, health, smoking status, cover and policy term.

What happens to mortgage protection when the mortgage is repaid?

Once the mortgage has been fully repaid, the lender no longer requires the policy. You should review whether the cover should be cancelled, retained or replaced based on your wider family protection needs.

Get a mortgage protection quote

Mortgage protection should be arranged early enough to avoid delaying your home purchase.

Whether you are buying your first home, moving house, switching lender or reviewing an existing policy, Dooley Insurance Group can help you understand and compare your options.

Contact our financial services team to request a mortgage protection quote.

The information on this page is general and does not constitute personal financial, legal or tax advice. Cover is subject to medical and financial underwriting, policy definitions, exclusions, terms and conditions. Mortgage requirements are determined by the lender.

Dooley Insurances Ltd t/a Dooley Insurance & Mortgage Brokers and Dooley Insurance Group is regulated by the Central Bank of Ireland.