How does Mortgage Protection Insurance Work

Mortgage Protection

Putting the key in the door of your newly bought home is one of the most rewarding moments in life. As we all know, it’s quite the journey to get to that exciting stage. From countless statements to lengthy legal forms, there's a lot to sort out beforehand.  Amongst all of that, little is as important as ensuring that your investment is safe no matter what – and that calls for mortgage protection insurance. Before you put pen to paper, have a look at our mortgage protection checklist and make sure you’re in the know.

Couple smiling reviewing their mortgage protection insurance checklist

Mortgage Protection Insurance Checklist

1. Do I really need mortgage protection?

Your mortgage provider will almost certainly require you to take out a mortgage protection policy in advance of drawing down your mortgage. Our mortgage projection 101 article has everything you need to know about the why, how and when of mortgage protection.

2. Do much will my mortgage protection cost?

This will depend on a few things:

  • The value of your mortgage; you need your mortgage protection to cover the amount you are borrowing, so this will vary for everybody. 
  • Whether you add specified illness cover
  • The length of your mortgage – this determines the length of your plan
  • Your age
  • Whether you are a smoker or not
  • Your current health status
  • If you take out a single, joint or dual life policy

3. Do I need to get my mortgage protection from the bank?

No, you can get mortgage protection from any market provider that will take on the risk.

One of the most common misconceptions about mortgage protection is the assumption that it has to be bought from the same bank or lender of your mortgage. Comparing the market for mortgage protection could give you a better level of cover, as well as additional benefits for you and your family.

Here are seven myths about mortgage protection everyone needs to know.

4. Do I need joint mortgage protection?

If you’re planning on taking out a joint mortgage, you can also take out joint mortgage protection.  This way, your protection plan covers both of you, and the balance of your mortgage will be paid should either of you die.

Alternatively, you have the option to take out a dual life it will pay off the mortgage on the first death and then continues to provide life assurance on the remaining life paying out a lump sum for your dependants if the second life passes before the end of the term.

5. What is specified illness cover?

Specified illness cover is like an extra layer of protection for your mortgage payments. It ensures your family is taken care of if you are diagnosed with a serious illness and become unable to work. This cover provides a lump sum payment which can be used to help with medical expenses, cover bills or be invested to provide a regular income.

Here are 10 questions to ask about specified illness cover before signing up.

6. Isn’t life insurance the same thing as mortgage protection?

Many people think that mortgage protection is the same thing as life insurance, but this isn’t the case. Mortgage protection will pay off the outstanding balance of your mortgage in the worst case scenario. This level of protection decreases over time in line with your mortgage payments. On the other hand, life insurance is a lump sum payment paid to your loved ones in the event of your death.

For all the basics on life insurance, check out our ‘what is life insurance?’ article.

7. Can I expect any benefits when I buy a mortgage protection policy?

You should try to choose a mortgage protection policy that offers some benefits for you and your family. At Aviva, we have plenty of benefits at no extra cost, because we want to help you no matter what life throws your way. These include:

  • Accidental death cover while your application is being considered2
  • Expert advice and guidance from a professional financial adviser who will take care of all of the paperwork. Our signature-free process makes getting the right cover quick and easy
  • Exclusive access to Best Doctors Second Medical Opinion Service*
  • Access to Aviva Family Care**. This is a counselling and support service that provides short-term counselling and carer support services.

8. Can I get additional advice on mortgage protection?

Our mortgage protection homepage has all you need to know, where you’ll also find our policy booklet that covers every last detail.

Shopping around for the best deals on mortgage protection doesn’t have to be confusing! Check out our breakdown of all the mortgage protection jargon you need to know.

You can get mortgage protection from Aviva for as little as €10 per month.1 Get your quote today.

Mortgage protection insurance from €10 per month

Ready to get cover? Get a quick quote.1

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1. Acceptance criteria, terms and conditions apply. These monthly premiums are based on single life cover of €170,000 for a person aged 31 next birthday and a non-smoker, over a 25 year term, total amount €10.03. Source: Aviva Life & Pensions Ireland DAC as at July 2020.
2. This cover kicks in from the moment you send us a fully completed and signed application form and direct debit mandate. You get cover for accidental death up until we accept or decline your application. We will pay out the lower of the life cover amount being applied for and €150,000. We will only pay once under this benefit in respect of any life insured regardless of the number of life cover policies or applications for life cover a person has with Aviva.

*Best Doctors® is a worldwide network of over 50,000 leading medical specialists across 450 specialities.* (Source: Best Doctors, 23 April 2018).
 **Aviva Life & Pensions Ireland does not guarantee the on-going availability of the Best Doctors - Second Medical Opinion benefit to its policyholders or the Aviva Family Care Benefit (Mental Health Support) and may, at its sole discretion, withdraw access to the service at a month’s notice. If we withdraw it, we’ll write to notify policyholders at least 31 days in advance of its removal.

Teladoc Health (who provide the Best Doctors and Aviva Family Care Benefit) is not a regulated financial service.

Aviva Direct Ireland Limited is regulated by the Central Bank of Ireland. A private company limited by shares. Registered in Ireland No 374895. Registered Office: Cherrywood Business Park, Dublin, Ireland, D18 W2P5.

Life and Protection Cover is underwritten by Aviva Life & Pensions Ireland DAC.

Aviva Life & Pensions Ireland Designated Activity Company, a private company limited by shares. Registered in Ireland No. 165970. Registered office at Building 12, Cherrywood Business Park, Loughlinstown, Co. Dublin, D18 W2P5. Aviva Life & Pensions Ireland Designated Activity Company, trading as Aviva Life & Pensions Ireland and Friends First, is regulated by the Central Bank of Ireland. Tel (01) 898 7950.