The Best Mortgage Protection Policy 2019

Which is the best policy?

There’s no simple answer to the question, but here’s how the policies we offer compare. You’ll find the best choice for you.

Greenway Financial Advisors currently arranges policies with Irish Life, New Ireland, Royal London, and Zurich.

Online quote calculators take into account basic details, and provide a standard price. Here are how the insurers compare for their minimum premiums. (Remember these figures can change based on individual details in your application)

Cheapest Possible Mortgage Protection Premium Per Month:

Cheapest Possible Mortgage Protection Premium Per Month:

In joint first place: Zurich – Min Premium €10 per month

In joint first place: Royal London – Min Premium €10 per month

In second place: Irish Life – Min Premium €13 per month

In third place: New Ireland – Min Premium €15 per month

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A good price is important, but it’s not the only factor. Each insurer has different features to their policy, and knowing what they are can help you make the right choice for you and your family.

Mortgage Protection Policy Features:

Royal London Policy Features

Royal London offers Dual Life cover. This pays out for each life insured, but Royal London keep the price the same as their Joint Life policy, and children are covered for up to €5,000.

Their conversion option is also the cheapest, at an extra 5% (this allows you to convert the plan into a life insurance plan without additional medical questions). They offer a 15% discount to the market best premium (price-match premium).

Royal London also offers the Helping Hand range of supports, at no additional cost.

Irish Life Policy Features

Irish Life will allow you to change and adapt your policy without requiring a new application for the first 5 years of the plan. This means you can reduce your cover, or increase by up to 20%, or extend your term.

Irish Life also offers the Life Care range of supports at no extra cost, and from January 2019, all protection customers have access to premium membership and rewards with their MyLife health app.

Irish Life covers children up to €5,000.

New Ireland Policy Features

New Ireland offers a convertible Mortgage Protection policy, at a 10% increase to the premium.

They also offer a Reinstatement option for lapsed policies. With their Guaranteed Insurability, they will allow an increase to a maximum of €500,000.

Children are covered for up to €4,000.

Zurich Policy Features

Zurich offers Waiver of Premium, as an automatic additional benefit. If you can’t work due to illness or disability, Zurich will pay your premium after a period of 13 weeks has passed.

They will also reinstate your policy up to 90 days after the first missed premium payment.

Changing Your Mortgage Protection – Is It Worth It?

Can changing my Mortgage Protection really make a saving?

It can. When the newspapers advise you to make a switch, they mention savings of €2,000 to €7,000 over the life of the policy. Obviously, these are averaged figures, with some people saving a little, and others a lot.

But I’m older, won’t that make a difference?

Age DOES cause the standard quote to increase, BUT, if your remaining mortgage amount and term have both decreased, this can still reduce the quote you’ll be offered by the insurers.

As an example, a new quote for a couple, both 30, non-smoking, for €300,000 for 35 years, is between €25 and €28 per month.

By contrast, a 50 yr old couple, looking for cover on €100,000 for 10 years, are quoted between €21.50 and €26 per month.

As older policies can sometimes be more complicated than modern mortgage protection policies, not only could you be paying for extras you don’t require, you could make an even greater saving by switching.

I’ve had some health issues though, won’t that make it very expensive?

It’s true that insurance companies will take details of your current health, and may apply a loading. This loading will be an increase of 50%, to 175% in rare cases, on your quoted monthly premium.

In a recent case for Greenway Financial Advisors, a couple in their 60s were quoting for €60,000, for 5 years. They had both experienced recent health issues, in the past 5 years, but the quote they received was substantially lower, so they decided to proceed with the application.

What happens next?

I made them aware that the quoted price was unlikely to be the final offer made by the insurer, and took their details. Both of my clients required a PMAR (Private Medical Attendants Report) from their GPs, which the insurance company sent, and paid for.

When the reports were finally received, and evaluated by the insurance company underwriting teams, a loading of 50% was applied to each of my clients. This increased their quoted monthly premium from roughly €25 to €50, but still left my clients with a saving of just over €200 per year, or €1,000 over the remaining 5 years of their mortgage.

That seems complicated.

An application that requires more information, or a PMAR, does take more time, and more work. Importantly, this is work that your broker does on your behalf. I can make the calls to doctors to remind them, and check with underwriting teams to give you estimates of the loading before you even apply.

If you’re changing your mortgage protection, I’ll make sure you know not to cancel your existing policy until my work is done. You’ll be covered while this is happening. If you want to discuss your options for switching your policy, contact me today. In the meantime, try our quote calculators to see if your policy could be working harder for you and your pocket.

Mortgage Protection – Make A Saving In Your 50s

What do Generation X and Baby Boomers have in common? You probably got Mortgage Protection before it was cool, like a lot of other things. This means there’s a chance you got your policy while it was more expensive too.

The cost of life insurance is getting lower for level term policies, due to increases in life expectancy. Your Mortgage Protection policy will work best for you if it’s a Decreasing Term Assurance.

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Jargon Explained

Decreasing Term Assurance: This means that as your mortgage decreases, the sum insured by your policy decreases.

In the past, people may have been sold Whole of Life policies as mortgage protection, for a sum that doesn’t decrease over time. If this is you, this could mean that a policy of €200,000 is insured against a property where you have only €50,000 remaining on your mortgage.

You could also have a policy that lasts until your death, but a mortgage that will be paid off in 5 years. Life cover is always a good idea, but cover on your mortgage, and cover on your life should always be separate.

A policy designed to cover a decreasing mortgage sum is the best option for you, with separate cover for your dependents and estate. As many as 20% of people aren’t sure how much they pay per month for Mortgage Protection. Equally, 33% of people admit some confusion about the difference between Mortgage Protection and other Life Insurance policies.

So why change mortgage protection?

In a nutshell, Mortgage Protection will pay off the remaining balance on your mortgage in the event of your death, and pays directly to your lender.

A Life Insurance policy pays out an insured sum in the event of your death. It can be a policy that you hold for a certain amount of time (term assurance), or until death (whole of life). Whole of life is more expensive, comparatively, than term assurance.

Mortgage Protection Medical Issues

If you currently have no medical issues, it’s a perfect time to investigate a new Mortgage Protection policy, as you could be offered cover for standard terms.

Mortgage Protection and smokers

Equally, when you first quoted for your cover, you may have been a smoker, and like many people you may have given up smoking, which can reduce the premium you’ll be offered.

The new premium you would pay could be reduced further because the mortgage sum and term you’re insuring are both smaller than at the time you originally purchased your policy.

Equally, if your original policy was part of the group policy offered by your lender, your potential savings could be pronounced.

There are estimates that switching policies could result in savings between €2,800 and €7,200, depending on your circumstances.

How to get your new policy in place.

  1. Dig through the paperwork drawer and find out your outstanding mortgage balance, and the remaining term with your lender.
  2. Get a quote from us for Mortgage Protection.
  3. Complete the fact-find, and we’ll let you know any potential changes to the standard price quoted.
  4. Apply online using our easy forms.
  5. Once your new policy is in place, (and only then!), you can cancel your old policy, and assign your new one to the bank.
Mortgage Protection Guide Cover

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Whats Included:

Different types of mortgage protection policies.

Where to buy mortgage protection.

Features of each seller & much more.

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