What is mortgage protection?
When you're taking out your mortgage, your lender will usually request that you also take out a mortgage protection policy. But what is it? It's a cheaper form of life cover, designed to help pay your outstanding mortgage balance if the worst were to happen. So you know your family can keep the home they love.
How does mortgage protection work?
When you take out a mortgage, your provider will insist you have enough cover in place to repay it if you die within the term of your mortgage. This is a basic type of life insurance cover. However, to give you further protection, you can combine your life cover plan with serious illness cover. This gives you protection for a number of serious illnesses.
When you take out a Mortgage Protection plan, you’ll pay a premium each month for the length of your mortgage term.
Your mortgage protection plan helps pays off your mortgage if you die before the end of the term. As it’s designed to work with your mortgage, the amount of cover reduces over time as you pay off your mortgage.
As you would expect, because your cover decreases over the term, this type of life insurance is usually cheaper than cover which stays at the full amount throughout the term of the policy.
The cost of your Mortgage Protection cover will depend on:
- the size of your mortgage - this determines the amount of cover you need
- whether you add a conversion option
- whether you add specified illness cover
- the length of your mortgage – this determines the term of your plan
- your age
- whether you are a smoker or non-smoker
- your current state of health
- whether you take out the plan by yourself or jointly with your partner
Additional cover
You can get even more peace of mind by adding specified illness cover to your mortgage protection policy. This means that if you are diagnosed and proven to have a specified illness or if you die, your benefit will be paid. About specified illness cover.
The difference between Life Insurance and Mortgage Protection
Siocha Costello, Protection Marketing Manager, Aviva Life & Pensions Ireland DAC explains the difference between Life Insurance and Mortgage Protection.
Transcript
00:00:00 Video starts
00:00:05 Siocha Costello, one minute pitch. The difference between Life Insurance and Mortgage Protection, your time starts now.
What is Life Insurance?
00:00:14 Siocha Costello, Protection Marketing Manager, Aviva Life & Pensions Limited
In a nutshell life insurance will pay your dependents a lump sum if you die.
00:00:20
What is Mortgage Protection?
00:00:22 Siocha Costello
Mortgage protection pays out the outstanding balance of your mortgage if you die.
00:00:25
So, what is the main difference between the two?
00:00:27 Siocha Costello
The money from you mortgage protection goes to your lender to pay off your mortgage so your family home is secure. Life insurance gives your family money for all their other expenses, childcare costs, electricity costs and loans.
00:00:41
Why would you need both?
00:00:42 Siocha Costello
If you are taking out a mortgage you are required to have mortgage protection in place, having both means having all your family financial outgoings are taking care off.
00:00:52
When is a good time to get cover?
00:00:54 Siocha Costello
Insurance costs are generally based on several factors. One of those is age so the younger you are generally the cheaper it is.
00:01:03
What do you think is the best thing about these products?
00:01:06 Siocha Costello
I think the peace of mind that comes will knowing that your family is financially secure if anything happened to you.
00:01:12
Siocha your time is up.
To find out more about Life Insurance and Mortgage Protection talk to your Financial Broker.
00:01:23 Video ends
Do you already have mortgage protection with us?
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- Register for Aviva Online Service Centre
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Contact our customer service team
1800 159 159
Monday, Tuesday, Thursday and Friday: 9:00a.m. - 4:00p.m.
Wednesday 10:00a.m. - 4:00p.m.
Email: csc@aviva.com
Policy features
Aviva Care
With your protection policy you have access to the following services through our Aviva Care benefit:
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Get guidance from our professional financial adviser to help you get cover suited to your needs.
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Weekends and Bank Holidays: Closed
Get a mortgage protection quote
With insurance from as little as €10 per month1, you can get a mortgage protection insurance quote in minutes with our online form.
Why choose us for mortgage protection?
Aviva has been providing trusted protection in Ireland for over 240 years. We’re part of the Aviva Group, providing 18.5 million customers* in the UK, Ireland and Canada with a range of solutions to meet their insurance, wealth and retirement needs. We’re there to protect the things that matter most to our customers: their homes and belongings, their health and wealth, their future and their families.
*Source: Aviva plc Annual Report & Accounts 2022.
Contact us
Existing customers
1800 159 159
Monday: 9:00a.m. - 5:00p.m.
Tuesday: 9:00a.m. - 5:00p.m.
Wednesday: 10:00a.m. - 5:00p.m.
Thursday: 9:00a.m. - 5:00p.m.
Friday: 9:00a.m. - 5:00p.m.
Saturday - Sunday: Closed
Email: csc@aviva.com
For a new quote
091 784440
Monday to Friday: 9:00a.m. - 5:00p.m.
Saturday - Sunday: Closed
Bank Holidays: Closed
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